Convert macOS High Sierra 10.13.6 laptop to VM

I have an old laptop that I need to keep running, but the hardware is failing. So I wanted to see if I can convert it to a VM. I have created a full Time Machine backup. I have also downloaded the Install macOS High Sierra install app from the App Store. The system requirements say this is a supported guest OS 10.13.6. But I am unable to figure out how to install.
I tried to create a VM using the install app, but when I choose install os, it seems to recognize the inter HD of the host and not of the VM configuration.
Host Machine is Mac-Mini 2018.
I am running Parallels 1.9.4. I am on a trial version from the App Store to see if I can get this working first before purchase.
I thought I could use the restore from Time Machine, but I get an error saying is can't restore because this is not the same machine the backup was run from.
Help on how I would accomplish this.

 

As far as I understand, unfortunately all Apple Silicon users can only use Parallels Desktop with an ARM version of the particular OS. So MacOS 10.13.xx will not be executed from Parallels Desktop. For me a major showstopper. In the context of Parallels virtual means no emulation of for example x86 architecture, longtime the logic of Apple. Please, any one, show me the I wrong... otherwise I continue my refund process after a decade of using this product..

 

With the latest version of 20 Pro, x86 emulation should be possible with limitations. I tried to use a PVM from my MBP x86 to import but it is not recognised as a valid x86 PVM. Reading the articles and blogs it seems that the focus is on Windows and Linux. Did anyone succeed in using a old x86 based (Parallels) PVM ? Or... is MacOS (10.14) excluded ?