As of 1Dec2021 this is still happening with Parallels 17 for Mac running Monterey ver 12.0.1 on a MacBook Pro 15" 2017 Model
I disabled the start up Parallels Tool Box and the challenge has gone away for now.
Go to:
System Preferences > Users & Groups > left pane, click your login > Login Items tab > Highlight "Parallels Toolbox" and click "-" to remove it from MAC OS startup
I believe Parallels is working on this issue but you never know.