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Have you tried switching to Shared networking before booting the VM, if you're not already using it? Seems several of us are having trouble with...
M5 MacBook Air here as well, and can't get Bridged Networking to work either, there's a handful of other threads popping up about this as well, so...
Parallels 26.2.2 on an M5 MacBook Air running Tahoe 26.3.1. Brand new Windows VM (spun up another clean VM as well to confirm it is not an issue...
Seeing the same here, just got done setting up on a new M5 Air, and Shared Network works without issue, but bridged will not work with the same...