Just to get this out of the way.
MacBook Pro 16" M1 Pro, 32GB, 500GB SSD
Parallels Desktop 18 Pro Edition, Version 18.0.2 (53077)
VM 1 - macOS Monterrey 12.6 (21G115)
VM 2 - Windows 11 Home (22H2)
After much wailing and gnashing of teeth, I got macOS up and running but quickly ran into "Failed...