Since a Linux VM running under Parallels is not doing actual hardware I/O is it worth the extra cpu to run btrfs or even ext4? It seems to me that the simpler the filesystem is on the Linux side the better. ExFAT might be the sweet spot? For sure APFS and all of its free space management is overkill. I have always used ext4 but maybe ExFAT is the way to go. Comments?
I believe Ext4 still manages file structures more efficiently and has better recovery capabilities (for VM crashes) than exFAT although operating virtually.