The license server rejects it.

I've been using the free trial for 1 day and later decided to purchase the yearly subscription for Parallels. However, whenever I paste in my activation key, it returns "The license server rejects it.". On top of this, I tried signing out, but the application insists that I don't have internet connection.

 

Here is the popup when I signout

 

Try it now and check. If you are still facing the issue, let us know.