Very Bad and Blurry Display

I have installed macOS 10.12.6 VM but no matter what display or hardware setting I apply, the display looks very bad and blurry. The same thing happens if I installed any Linux system. Any ideas?

I am using Parallels Desktop 12 on Macbook Pro 15" 2015 model.

 

Hi @CarloC1 , please help us with the screenshots . We will check and assist you .

 

I've solved it on mac VM. The Parallels tools did not install automatically so I installed from Actions menu and now it looks ok. However, I still have problem with Ubuntu. The resolution is grainy. If I choose retina, everything appears very small.

 

Hi @CarloC1 , please try to select "Scaled" instead of Retina and check if that is working.