Autofill Verification popup is appearing in Parallel VM instead of MacOS Window

This Autofill pop-up (Attached pic) insists on appearing in my Parallels VM instead of the macOS window where it is supposed to. I am logging into my bank from a browser and requesting a verification code. I do get the text on my phone and MacOS, but this Autofill pop-up will only show up in the VM, and, if the VM is not running, I don't get this pop-up at all. It used to work correctly. I think it started after updating to the latest verion of Parallels. I have played with all the settings in the VM (Reinstall tools, Turn off app sharing, turn off syncing, etc.) Has anyone else experienced this behavior?

 

Started seeing it today. Very annoying with no obvious option to disable.

 

This has been happening to me as well for a month or two.

 

So I also did a support ticket. Through back and forth they determined it was a MacOS issue. During this work I saw it happen in nonParallels/nonWindows areas like Mac apps. It's just 95% of the time it's under Windows. Grok (AI) thought it might be the MacOS getting tripped up in how Parallells interfaces with MacOS - like a handoff mixup or something.
Long story short, they said it was a Mac thing, just happens in Par/Windows except for a few Mac windows.

 

Sounds like a frustrating issue. I've seen similar pop-ups get confused between macOS and the VM when something changes in Parallels after an update. You might try resetting the permissions for autofill and notifications on the macOS side, then fully restarting both macOS and the VM. Some users reported that this forces macOS to "reclaim" the popup. Another thing worth checking is whether the VM is set as the default handler for certain system prompts after the update. Sometimes Parallels tools can override that without warning. Would be interested to hear if anyone else has run into the same behavior since the latest version.