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I forgot to say, that once I discovered the problem and deleted the backups, Parallels would still fail to see the free space. This was because in...
I solved it. Turned out that my Mac was keeping invisible local backups which were taking up space. The occupied space showed up as "Purgeable"...
I use Parallels on a Mac and I run Windows with it. I only have MS Office installed and I use it for very few things. I do not store any files in...