I hope Parallels support can provide an answer to this question. The fact that Standard is not officially supposed to have TPM support is the primary reason I've decided not to upgrade to Parallels 17. As an enthusiast, I cannot afford a Pro subscription. I was willing to pay for the 17 upgrade even though I just purchased Parallels 16.5 a couple of months ago. But if only Pro will have TPM support, I plan to stay with 16.5 for now then abandon Parallels as soon as VMware Fusion is ready for the M1.
By the purchase information page, Parallels 17 standard offers TPM 2.0 support as well as the Pro version on the M1 Macs. This has been updated since initial offering. However, please note that if you are going to use Windows 11, that the version 17 of Parallels (pro, standard, and business) do not as yet offer WDDM 2.0 support in the DirectX 12 display driver in parallels. As a result, MS will only let you be on the Dev channel and not switch to the more stabilized Beta channel. There is a script some are running that will allow you to switch to the Beta channel, but some of us are holding off until Parallels officially has the patch that many of us have contributed technical reports to.
As for VMWare Fusion. They have publicly stated that they will NOT be supporting Windows 10 or 11 ARM on M1 Macs. This was announced months ago when Parallels first came out with the 16.5 release that provided the workaround for installing the Windows 10 ARM on an M1 Mac. There are still licensing issues related to running an ARM VM on M1 Macs and VMWare has chosen not to violate the ToS with Microsoft. However, nothing is entirely clear as Parallels has been working WITH Microsoft to both allow Windows 10 ARM images to be installed on an M1 Mac successfully under the 16.5 version of Parallels....and the 17 versions. Windows 11, because of requirements for the TPM 2.0 and WDDM 2.0 DirectX 12 drivers have complicated things for users, however, Parallels informs us that they are working on a fix.