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I have tried the Parallels forum aswell for any help I could get.
https://forum.parallels.com/threads/windows-10-arm-download-for-m1-mac.355071/
There has seems to be a new update, where a TPM is needed (no idea what this is)
https://www.parallels.com/products/desktop/
Parallels Desktop for Mac computers with the Apple M1 chip
This update for Parallels Desktop 16 for Mac 16.5.2 (50703) addresses overall stability and security issues, and includes the following improvements:
To continue using and updating Windows on Mac computers equipped with the Apple M1 chip, we supported adding a virtual TPM (Trusted Platform Module) chip to the virtual machine configuration. You need to add TPM to existing Windows virtual machines manually.
A virtual TPM chip is now added to new Windows virtual machines automatically.
This explanation will be helpful.
Trusted Platform Module Technology Overview (Windows) - Windows security | Microsoft Docs
- JazzzmOct 29, 2021Copper ContributorI updated the parallels to 17- downloaded and installed https://www.microsoft.com/en-us/software-download/windowsinsiderpreviewARM64
Which seems to work. But Im having TPM and internet issues. Could probably be the Hyper-V enabled (instructions)... - JazzzmOct 24, 2021Copper ContributorI havent solved it yet. The upcoming week I will spend more time to fix this.