Windows 11 works on "unsupported" hardware?

Hey folks, I'm curious about something:

I'm running a 2017 iMac with an Intel i5 processor, Parallels Desktop 19, and a Windows 10 VM.

Thinking about Windows 11, in the Windows 10 settings, it says "This PC doesn't currently meet the system requirements to run Windows 11," and therefore there is no option to upgrade.

On a lark, I decided to download the Windows 11 ISO from Microsoft, and then used it to create a new VM. To my astonishment, it worked, with no error messages. Can this be right? Is Parallels fooling Windows 11 into believing my hardware is sufficient? Before I go through the trouble of migrating my license key and installing/configuring apps, thought I'd check to see if this normal behavior.

Thanks!