I understand there are issues with Tahoe Host/Parallels on an Intel machine using the latest version of parallels desktop 26.4.2.
My issue (and I have tried this with several macOS client VMs running Sonoma and Ventura.
1. Start the VM
2. Parallels tools wants to update
3. Asked to Reboot
4. Reboot proceeds
5. Hangs at the same point for every VM:

6. I can STOP the VM
7. DR Google says to get rid of the *.sav and *.mem files
8. Restart and it boots, but I have destroyed the snapshots (that's wher the *.mem and *.sav files are)
9. All is well until I save a new snapshot and reboot same issue
This is so F$%^&*()ing frustrating, and, yes, I have put in a support ticket with Parallels. I understand that macOS tahoe is the final version of macOS to have any Intel compatibility (something we need to develop Windows and macOS systems for intel based systems). Yes you can run Windows on M series paralles, but it's Windows ARM. Yes it does have a compatibility layer, but that's no good for the low level development we are doing. So this is turning into a real shitshow.