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Heyooooo! Looks like this issue has been fixed after installing 2022-06 Cumulative Update for Windows 11 Version 22H2 for arm64-based Systems...
Same issue here... MacBook Pro (M1 Pro), Parallels Version 17.1.4 (51567), Windows 11 Pro Version 22H2 (OS Build 22621.105) with Windows Defender...