Win10: Parallels display adapter (WDDM) code 43

Hello.

After installing Parallels Tools on a Win 10 VM I've experienced extremely poor performance. It turned out VM was using Microsoft basic display adapter driver. I tried to manually install Parallels display adapter (WDDM), but it wouldn't start with the following error:

Code:

Windows has stopped this device because it has reported problems. (Code 43)

Is there a known way to fix this error? I'm using Parallels Version 16.1.0 (48950).