Got a reply from second tier support:
I have not had the chance to try this yet but am posting it here for anyone else that may run into this issue. I will post again when I have a chance to report the results.
Also maybe we should get the thread name changed to something like
"Installing OSX Mountain Lion as a Parallels guest from recovery partition fails on Late 2012 iMac with Fusion drive"
Last edited: Feb 19, 2013