windows 11 has no internet access. Tried everything, please help

It used to work without issues, but now windows 11 VM has no internet access. If I do ipconfig /all I get:

Ethernet adapter Ethernet:

Connection-specific DNS Suffix . : localdomain
Description . . . . . . . . . . . : Parallels VirtIO Ethernet Adapter
Physical Address. . . . . . . . . : 00-1C-42-9A-FB-C7
DHCP Enabled. . . . . . . . . . . : Yes
Autoconfiguration Enabled . . . . : Yes
Link-local IPv6 Address . . . . . : fe80::a009:22c6:c940:a562%6(Preferred)
Autoconfiguration IPv4 Address. . : 169.254.165.98(Preferred)
Subnet Mask . . . . . . . . . . . : 255.255.0.0
Default Gateway . . . . . . . . . :
DHCPv6 IAID . . . . . . . . . . . : 100670530
DHCPv6 Client DUID. . . . . . . . : 00-01-00-01-29-1C-9B-53-00-1C-42-9A-FB-C7
DNS Servers . . . . . . . . . . . : 10.211.55.1
NetBIOS over Tcpip. . . . . . . . : Enabled

I have no default gateway and a self assigned IP.

I spoke to parallels support via chat, but they could not find anything.

In parallels desktop maangment app, the hardware networking is setup to the default "shared network". I also tried changing it to "bridged network default adapapter" but this didnt help
I also reinstalled parallels tools and rebooted.

Any other ideas?

I ran the windows network diagnostics once, and it said networking was not configured correctly, and fixed it and internet worked until I next rebooted the VM. Now if I run that same troubleshooter, it just says "An error occured whilst running the troubleshooter"

Macbook pro (m1 pro max) with 12.4
windows 11

 

Hello, Please provide the screenshot of the error message you are getting. Thanks.