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I tried now Windows 11 ARM and I have no problem with USB devices connecting to the VM. It seems, there is a problem with MacOS as a guest system.
@ PeterB86 I even did not get this popup where to connect. @ Avinash Bundhoo My report number is: 483282424
I have a Macmini M4pro (Sequoia 15.3) with Parallels 20.2.0 installed. In a VM I also have Sequoia 15.3 installed. Everything works instead of USB...