Kernel Panic and WindowServer crashing in latest 26.3.2

Are anyone else experiencing this?

I was having multiple crashes past 2-3 weeks after the 26.3.1 update but didn't think Parallels Desktop was related to it. But today, the crash was very consistent and only happening when running one of my VM's.

After the update to 26.3.2 a couple of hours ago, I was booting my VM's one by one to check for Parallels Tool updates for each guest VM. Almost no other apps are running except for Parallels Desktop. I boot each VM one at a time only and the crash is consistent to only one VM.

Host Mac Details:
MacBookPro 2019 15"
2.3Ghz 8C i9
32GB DDR4
Radeon Pro 560X w/ 4G
Running MacOS Sequoia 15.7.5

Guest VM Details:
4 Cores - 1GB Memory
Graphics Mem: Set to 64MB (not auto)
Two Network Adaptors: 1 for local, and 1 for external network
Type: Other Linux
OS: OpenWRT 25.x (for testing openwrt configs)

I've also got 2 Win10 VMs, 1 Win7 VM, 1 Linux (Kali) VM

Last Crash Log:
panic(cpu 6 caller 0xffffff80162b189b): userspace watchdog timeout: no successful checkins from WindowServer (2 induced crashes) in 120 seconds
WindowServer has not exited since first loaded
service: logd, total successful checkins in 1147 seconds: 115, last successful checkin: 0 seconds ago
service: WindowServer (2 induced crashes), total successful checkins in 1110 seconds: 99, last successful checkin: 120 seconds ago
service: remoted, total successful checkins in 1147 seconds: 113, last successful checkin: 0 seconds ago
service: opendirectoryd, total successful checkins in 1147 seconds: 115, last successful checkin: 0 seconds ago
service: configd, total successful checkins in 1147 seconds: 115, last successful checkin: 0 seconds ago

Panicked task 0xffffff918183a980: 3 threads: pid 141: watchdogd
Backtrace (CPU 6), panicked thread: 0xffffff8cb475c598, Frame : Return Address
0xffffffe9ee8ab510 : 0xffffff80133d5761
0xffffffe9ee8ab560 : 0xffffff801354b846
0xffffffe9ee8ab5a0 : 0xffffff801353a99c
0xffffffe9ee8ab660 : 0xffffff801336a971
0xffffffe9ee8ab680 : 0xffffff80133d5a57
0xffffffe9ee8ab780 : 0xffffff80133d50db
0xffffffe9ee8ab7f0 : 0xffffff8013bd0827
0xffffffe9ee8ab8e0 : 0xffffff80162b189b
0xffffffe9ee8ab8f0 : 0xffffff80162b1360
0xffffffe9ee8ab910 : 0xffffff80162b0465
0xffffffe9ee8aba40 : 0xffffff8013b3c439
0xffffffe9ee8aba70 : 0xffffff8013b3c79d
0xffffffe9ee8abbe0 : 0xffffff80134eedbc
0xffffffe9ee8abd00 : 0xffffff80133b209c
0xffffffe9ee8abda0 : 0xffffff80133c5047
0xffffffe9ee8abdf0 : 0xffffff80133c56da
0xffffffe9ee8abee0 : 0xffffff801351e9a4
0xffffffe9ee8abfa0 : 0xffffff801336add6
Kernel Extensions in backtrace:
com.apple.driver.watchdog(1.0)[4666644E-D886-3732-9DB5-251F4321768C]@0xffffff80162af000->0xffffff80162b1fff

Process name corresponding to current thread (0xffffff8cb475c598): watchdogd

Mac OS version:
24G624

Kernel version:
Darwin Kernel Version 24.6.0: Fri Feb 27 19:33:24 PST 2026; root:xnu-11417.140.69.709.8~1/RELEASE_X86_64
Kernel UUID: 2B2CD3CD-ED7B-343C-B85F-29BD67CE78C7
roots installed: 0
KernelCache slide: 0x0000000013000000
KernelCache base: 0xffffff8013200000
Kernel slide: 0x00000000130e8000
Kernel text base: 0xffffff80132e8000
__HIB text base: 0xffffff8013100000
System model name: MacBookPro15,1 (Mac-937A206F2EE63C01)
System shutdown begun: NO
Hibernation exit count: 0

System uptime in nanoseconds: 1147856869313
Last Sleep: absolute base_tsc base_nano
Uptime : 0x0000010b4199e1ad
Sleep : 0x0000000000000000 0x0000000000000000 0x0000000000000000
Wake : 0x0000000000000000 0x0000001af4945ed4 0x0000000000000000
Compressor Info: 0% of compressed pages limit (OK) and 0% of segments limit (OK) with 0 swapfiles and OK swap space
Zone info:
Zone map: 0xffffff817f23a000 - 0xffffffa17f23a000
. PGZ : 0xffffff817f23a000 - 0xffffff818323b000
. VM : 0xffffff818323b000 - 0xffffff864f56d000
. RO : 0xffffff864f56d000 - 0xffffff87e8bdd000
. GEN0 : 0xffffff87e8bdd000 - 0xffffff8cb4f0f000
. GEN1 : 0xffffff8cb4f0f000 - 0xffffff9181241000
. GEN2 : 0xffffff9181241000 - 0xffffff964d573000
. GEN3 : 0xffffff964d573000 - 0xffffff9b198a6000
. DATA : 0xffffff9b198a6000 - 0xffffffa17f23a000
Metadata: 0xffffffa181911000 - 0xffffffa1a1911000
Bitmaps : 0xffffffa1a1911000 - 0xffffffa1a7911000
Extra : 0 - 0

last started kext at 916006654691: com.parallels.kext.hypervisor 26.3.2 57398 (addr 0xffffff7fa9a05000, size 90112)
loaded kexts:
com.parallels.kext.hypervisor 26.3.2 57398
>!ATopCaseHIDEventDriver 8421.2
>!AHIDALSService 1
>!APlatformEnabler 2.7.0d0
>AGPM 137
>X86PlatformShim 1.0.0
@kext.AMDFramebuffer 7.0.0
@kext.AMDRadeonServiceManager 7.0.0
>!AUpstreamUserClient 3.6.12
@filesystems.autofs 3.0
@UVCService 1
@kext.AMDRadeonX4000 7.0.0
>!ABridgeAudio!C 530.2
>!AGraphicsDevicePolicy 8.1.10
@AGDCPluginDisplayMetrics 8.1.10
>!AGFXHDA 400.1
>pmtelemetry 1
@filesystems.nfs 1
|IOUserEthernet 1.0.1
>usb.!UUserHCI 1
>!A!IKBLGraphics 23.0.7
>!ARXE 1.0
>!AHV 1
>!AMuxControl2 8.1.10
>AGDCBacklightControl 8.1.10
>!ABacklight 180.12
>!AMCCSControl 1.17
>!AFIVRDriver 4.1.0
@kext.AMD9500!C 7.0.0
>BridgeAudioCommunication 530.2
>ACPI_SMC_PlatformPlugin 1.0.0
>!A!ISlowAdaptiveClocking 4.0.0
>!A!IPCHPMC 2.0.1
>!AAVEBridge 6.1
>!AThunderboltNHISpeedTest 0.0.1
>!AThunderboltIP 4.0.3
>!A!ICFLGraphicsFramebuffer 23.0.7
|SCSITaskUserClient 500.120.2
>!UMass!SInterfaceNub 556
>BCMWLANFirmware4388.Hashstore 1
>BCMWLANFirmware4387.Hashstore 1
>BCMWLANFirmware4378.Hashstore 1
>BCMWLANFirmware4377.Hashstore 1
>BCMWLANFirmware4364.Hashstore 1
>!AFileSystemDriver 3.0.1
@filesystems.tmpfs 1
@filesystems.lifs 1
@filesystems.hfs.kext 683.120.3
@BootCache 40
@!AFSCompression.!AFSCompressionTypeZlib 1.0.0
@!AFSCompression.!AFSCompressionTypeDataless 1.0.0d1
@filesystems.apfs 2332.140.13
>!ABCMWLANBusInterfacePCIeMac 1
@private.KextAudit 1.0
>!ASmartBatteryManager 161.0.0
>!AACPIButtons 6.1
>!ASMBIOS 2.1
>!AACPIEC 6.1
>!AAPIC 1.7
@!ASystemPolicy 2.0.0
@nke.applicationfirewall 406
|IOKitRegistryCompatibility 1
|EndpointSecurity 1
@Dont_Steal_Mac_OS_X 7.0.0
>!ADiskImages2 385.140.4
@kec.!AEncryptedArchive 1
>!AActuatorDriver 8440.5
>!AHIDKeyboard 8010.1
>!AMultitouchDriver 8440.5
>!AInputDeviceSupport 8440.2
>!AHS!BDriver 8421.2
>IO!BHIDDriver 9.0.0
@kext.AMDRadeonX4100HWLibs 1.0
@kext.AMDRadeonX4000HWServices 7.0.0
>!UAudio 750.4
>!AAudioClockLibs 420.3
>!AHDA!C 600.2
|IOHDA!F 600.2
>!A!ILpssUARTv1 3.0.60
>!A!ILpssUARTCommon 3.0.60
>!AOnboardSerial 1.0
|IOAudio!F 600.2
@vecLib.kext 1.2.0
>!ASMBusPCI 1.0.14d1
@kext.triggers 1.0
>IOHIDPowerSource 1
>!ACallbackPowerSource 1
|IOAVB!F 1320.3
>!AUIO 1
|IORDMA!F 1.0
>!ARSMChannel 1
|IORSM!F 1
>!AIPAppender 1.0
>!AGraphicsControl 8.1.10
>!ABacklightExpert 180.12
>!ASMBus!C 1.0.18d1
|IONDRVSupport 599
@plugin.IOgPTPPlugin 1340.12
@!AGPUWrangler 8.1.10
@kext.AMDSupport 7.0.0
>IOPlatformPluginLegacy 1.0.0
>X86PlatformPlugin 1.0.0
|IOSlowAdaptiveClocking!F 1.0.0
>IOPlatformPlugin!F 6.0.0d8
>driverkit.serial 6.0.0
>!AThunderboltEDMSink 5.0.3
>!AThunderboltDPOutAdapter 8.5.1
|IOAccelerator!F2 485
@!AGraphicsDeviceControl 8.1.10
|IOGraphics!F 599
>usb.!UHub 1.2
>usb.cdc.ecm 5.0.0
>usb.IOUSBHostHIDDevice 1.2
>usb.cdc.ncm 5.0.0
>usb.cdc 5.0.0
>usb.networking 5.0.0
>usb.!UHostCompositeDevice 1.2
>!AThunderboltDPInAdapter 8.5.1
>!AThunderboltDPAdapter!F 8.5.1
>!AThunderboltPCIDownAdapter 4.1.1
>!AHPM 3.4.4
>!A!ILpssI2C!C 3.0.60
>!A!ILpssI2C 3.0.60
>!A!ILpssDmac 3.0.60
>!ABSDKextStarter 3
|IOSurface 372.5.2
@filesystems.hfs.encodings.kext 1
>!ASyntheticGame!C 12.6.1
>!AXsanScheme 3
>!AThunderboltNHI 7.2.81
|IOThunderbolt!F 9.3.3
>usb.!UVHCIBCE 1.2
>usb.!UVHCICommonBCE 1.0
>usb.!UVHCI 1.2
>usb.!UVHCICommon 1.0
>!AEffaceableNOR 1.0
|IOBufferCopy!C 1.1.0
|IOBufferCopyEngine!F 1
>!ABCMWLANCoreMac 1.0.0
|IO80211!F 1200.13.1
>IOImageLoader 1.0.0
|IONVMe!F 2.1.0
>!AOLYHALMac 1
|IOSerial!F 11
>corecapture 1.0.4
>usb.!UHostPacketFilter 1.0
|IOUSB!F 900.4.2
>usb.!UXHCIPCI 1.2
>usb.!UXHCI 1.2
>!AEFINVRAM 2.1
>!AEFIRuntime 2.1
>!ASMCRTC 1.0
|IOSMBus!F 1.1
|IOHID!F 2.0.0
|IOTimeSync!F 1340.12
|IOSkywalk!F 1.0
>mDNSOffloadUserClient 1.0.1b8
|IONetworking!F 3.4
>DiskImages 493.0.0
|IO!B!F 9.0.0
|IOReport!F 47
$quarantine 4
$sandbox 300.0
@kext.!AMatch 1.0.0d1
>!ASSE 1.0
>!ALockdownMode 1
>!AKeyStore 2
>!UTDM 556
|IOUSBMass!SDriver 259.100.1
|IOUSBHost!F 1.2
>!UHostMergeProperties 1.2
>usb.!UCommon 1.0
>!ABusPower!C 1.0
|IOSCSIBlockCommandsDevice 500.120.2
|IOSCSIArchitectureModel!F 500.120.2
>!AFDEKeyStore 28.30
>!AEffaceable!S 1.0
|IO!S!F 2.1
>!ACyrus 1
>!AMobileFileIntegrity 1.0.5
$!AImage4 7.0.0
@kext.CoreTrust 1
>!ACredentialManager 1.0
|CoreAnalytics!F 1
>!ASEPManager 1.0.1
>IOSlaveProcessor 1
>!AACPIPlatform 6.1
>!ASMC 3.1.9
|IOPCI!F 2.9
|IOACPI!F 1.4
>watchdog 1
@kec.pthread 1
@kec.XrtHostedXnu 1
@kec.Libm 1
@kec.Compression 1.0
@kec.corecrypto 14.0