To everyone on this thread interested in how to salvage a VM -- I've been using Parallels for years, and I've learned that before I install an update to Parallels or to Windows, I always back up my SSD storage using Carbon Copy Cloner (of course there are other apps that can do this as well). That way I can easily go backwards in time and install either a past version of Parallels and restore my VM, or in the case of a failed Windows update I can simply delete the VM and reinstall the copy. In general I run a backup once a week since only changed files are copied, and it takes <20 min. Case in point - I was in the midst of a Windows update last week when all of a sudden my 14" M1 MacBook crashed (NOTE - this was after the macOS Monterrey 12.4 install, and it would somewhat routinely crash after waking from Sleep. I think I fixed the problem by doing an SMC reset). Nonetheless, my Windows 11 install wound't pick up where it left off - basically it was toast. So I deleted the VM and restored the copied VM and ran the Windows 11 update which completed successfully. Bottom line - These apps and operating systems are just too damn complex to trust that everything will work correctly. Our only recovery is to have backup handy.