Guest MacOS 12 VM Software update fails at password authentication prompt

Attempted to update Guest OS 12 on M1 Max MBP 16. OSX prompts for update.
Issue:

• Select install update
• get the expected authentication prompt
• enter password
• re-prompted to enter pwd over and over.

Attempted to resolve:

• Updated to latest parallels 18.1.0
• Reinstalled parallels tools
• change admin users password
• login with different admin user
• create new admin user and login and attempt update.
• attempted update via terminal, but ends up opening the same UI prompt for pwd and failing to accept the users pwd.

Is this a known issue/any known resolution? I don't see a solution in forum or kb.

 

Thank you for the information.

 

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