VM unusable after Parallels update: "Windows cannot access \\Mac\Home\Desktop"

I am running Windows 10 on Parallels Desktop 12 for Mac. The computer is running OS 10.10.5. I installed a Parallels update yesterday that has rendered my virtual machine useless and I cannot do my job.

Immediately after running the update, upon opening Windows, I got the "Windows cannot access \\Mac\Home\Desktop" message (attached "Windows cannot access" image). The background does not have any files or shortcuts on the desktop. Here's the real kicker - the mouse doesn't work in Windows; thankfully it still works for all Mac stuff. That means I can't go in and do anything to fix it!! I used the keyboard to select "Diagnose" but it doesn't get me anywhere (attached "Win Net Diag" files).

I've deduced through forums and KB articles it's probably a problem with Parallel Tools. So I
a) try Reinstall Parallel Tools through the Actions menu and I get a popup in Windows that says "DVD Drive (D: ) Parallels Tools / Select to choose what happens with this disc." which of course I can't because my mouse won't work. Next...
b) navigate to the Windows Control Panel to remove it as directed by a KB article. It's not there. (attached "Uninstall Program")

So, I uninstalled Parallels by dragging it and Parallels Toolbox into the Mac trash. Restarted. Downloaded a new Parallels 12. Installed. Same problem with Windows. Same problem with not being about to Reinstall Parallels Tools.

I also tried using Time Machine to restore Parallels to two days ago, but no luck (not surprised).

I am dead in the water. Please HELP! Many thanks.

 

Hi SaraH3,
The issue you are facing is due to Parallels Tools if it is reinstalled the issue will get resolved. We understand that you are unable to use the mouse but you can use the keyboard and complete the installation. After selecting Actions > Reinstall / Install Parallels Tools select continue then select Win Key + E on Windows keyboard (on Mac keyboard select CMD + E ) which will open Windows Explorer use "Tab" key and select "This PC" then "D: drive" or CD drive to install Parallels Tools.