Parallels is fully compatible with Windows 11. The problem with the Dev Channel is that the builds can be unstable. I would not recommend using it unless you absolutely have to. The latest Dev Channel build seems to work again, but earlier builds caused a lot of problems. Another reason not to use the Dev Channel is that you can't go back to the Beta or Release Preview Channels without a clean install of Windows. Now that the Dev Channel shows you a build to upgrade to, try moving to the Beta Channel and check if the update to build 22000.282 shows up. If it does, upgrade to that. After the upgrade you can choose to leave the Insider Program, stay in the Beta Channel or move to the Release Preview Channel.