Windows 11 VM on Parallels has broken virtual TPM.

Verified that this works for me. Had to restart my VM after disabling the feature 2 times before intune gave a go on "accessing company resources".

 

This is the reality that Parallels seem not to grasp. We need to run VMs with the latest updates and security features for compliance with corporate security requirements. The fact they seemingly don't test or report any of this proactively when a change breaks things is concerning.

 

It is preferable to block only this specific update (KB5101650) rather than completely disabling Windows Update. This way, you will continue to receive security updates.
You can proceed as follows:
Hide the affected update (recommended method)
Microsoft provides the "Show or Hide Updates" (wushowhide) utility, which allows you to hide a specific update so that it is no longer offered for installation.
If the update has already been installed, uninstall it first, then hide it.
The utility is:windows-update-show-hide_fr_432485.diagcab

 

It is preferable to block only this specific update (KB5101650) rather than completely disabling Windows Update. This way, you will continue to receive security updates.
You can proceed as follows:
Hide the affected update (recommended method)
Microsoft provides the "Show or Hide Updates" (wushowhide) utility, which allows you to hide a specific update so that it is no longer offered for installation.
If the update has already been installed, uninstall it first (wusa /uninstall /kb:5101650 /promptrestart), then hide it.
The utility is:windows-update-show-hide_fr_432485

 

Before you consider running without the July update I would urge you to look at the number and severity of the security vulnerabilities KB5101650 fixes. TL;DR it's the highest number of fixes they've ever released in a monthly update.

 

Same problem, waiting for Parallels to release update...

 

@PaulWoodward's solution works indeed. The only assumption I make now is that when Parallels comes with an updated vTPM, we run the same vivetool and enable id:62861611 again.

thanks Paul!!

 

@VALLAJ , that does not work for me, because then my company detects not all updates are installed and blocks access to company resources.

 

My company will block the unapproved executable unless i can persuade the IT overlords to grant an exception. so still waiting on the fix.