I had to do a full system reinstall, and also reinstalled Parallels. I connected up my virtual machines, and could see them ok in Control Center. Trying to start Windows 10 shows a problem ID 352. I tried following the kb articles, but they are only up to Parallels 10, and I'm on Parallels 12. Still, I deleted the application and emptied trash, ran Disk Utility / First Aid (Disk Utility no longer has the Repair Disk option shown in the kb article), rebooted, and reinstalled Parallels 12. Still get the same issue. During the first install of Parallels 12 there was a dialog saying something about a driver being blocked, I'm sure that's relevant, but I can't get the message to reappear. Is there a manual way for me to install whatever VM driver Parallels is missing, that the system blocked the first time?
Ok, so I remembered something I had to do a while ago, and it seems to fix the issue. Doing csrutil disable in the Recovery version of Terminal solves the problem.
I did send the solution in as Feedback too. Hopefully in a High Sierra compatible update you can find away to fix the issue the issue so that people don't have to track down obscure workarounds!
Thank you. All feedbacks are reviewed by the management and will be implemented depending on the level of demand/recurrence.