Didn't see this thread when I posted mine, I got the same. It means Windows detected a Hardware issue, but what is the issue? Hopefully the Parallels team can fix.
Disable Sharing in the virtual machine (Options > Sharing, Share Mac and Share Windows), shutdown, start Windows back up and check for updates. Once I did this I was able to complete installation of the updates, the end of service message disappeared, and more updates became available. I installed them, then Parallels automatically updated its driver. I haven't tried re-enabling sharing yet, but all error messages are gone and all updates installed.
I saw the same End of Service message, but I was still able to download and install Build 21382 After 21382 was installed, the End of Sevice message no longer appeared.
There is a thread on this, disable sharing between windows and the Mac, the update will install, then re enable sharing. Message goes, and your on the latest build.
Hello guys, this is a know issue and Parallels Engineering team are currently working on it. As a workaround please go to the settings of the VM. Options > Sharing > Share Mac. Disable: Share Mac user folders with Windows Share iCloud, Dropbox, and Google Drive Map Mac volumes to Windows Install the update and enable these options again.
I was able to install Dropbox in the MacOS using the Mac installer after doing that. I was expecting that I would be able to install Dropbox in Windows, which I had been able to do on a non-M1 MacBook Air that I bought last year. But when I try to do that on the M1, by running the Dropbox installer for Windows, it says "Your device is not compatible with this version of the Dropbox app / Dropbox for S mode will run on your device. Do you want to install it from the Microsoft Store?" But then when I do that I get a Dropbox Installer error message "The installer encountered error 2." Has anyone successfully installed Dropbox for Windows in a MacBook Air M1?