I tried this once on Parallels 17 after I had updated to the insider preview of Windows 11, and had the same result. After upgrading to Parallels 17.1 the TPM module was automatically added back into my Win 11 VM, and I got the usual "Attempting repairs" - "LOL no" sequence. Removing the TPM module fixes it, but that seriously confuses me, as I thought Windows 11 needed it? I've attached my system info, and it correctly states it can't find the TPM module etc. Odd that the SKU is undefined, as I just noticed
Probably secure boot (activated with TPM) prevents some driver (storage) from loading... Try to disable secure boot. Or you can try to activate secure boot in your working configuration and check if it works.
