Windows recognises 4k screen in 8k res when I go fullscreen, looks very bad on 4k

I have installed the Windows 11 Arm Version into Parallel. It works great, except that my resolution is wrong.

My screen is a 3840x2160 screen. When opening my VM, it takes up the top left quarter of my screen in windowed mode. But, windows successfully recognises it as a 3840x2160 screen.

As soon as I try and go fullscreen, the res changes to 6720x3654. I assume, this is because the window is getting larger.

I've tried enabling full screen in the settings but it doesn't help. Any idea what is going wrong?