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I have this issue with Parallels Desktop 15. I use an Apple Thunderbolt Display with 2560 x 1440. My virtual Windows 10 machine shows a resolution...
Oh. I just found the solution online. The password is the same as your user account in macOS.
I also have this problem. I try parallels as the password, but after a few tries I get locked out.
I also have a very noticeable lag in my Windows 11 ARM VM. I mostly notice it when playing games, but there's also lag when using apps like MS...
