I have two VMs, neither one will start First one is configured as 256 GB disk, second one is configured as a 150 GB disk. Machine has 732 GB of free space. I've run disk first aid on the mac and I''ve rebooted. I had about 500 GB when the problem first happened, I freed up another 200+ GB and it's still happening. iMac Pro with 2TB drive.
I don't have a solution, but I am having a similar issue. I had it in 16 and I just upgraded to 17 and have the same issue. I tried reducing the amount of RAM for the VM down to 8 GB and that didn't fix it either. Sometimes I can start the machine and I'll get the free space warning while the machine is running. Sometimes I can't start the machine, like what you are seeing. I hope someone has a solution. It is very annoying.
Hi, please update your Parallels Desktop to the latest build 17.0.1. and collect the tech report once the issue is reproduced.