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I am a beta tester of Parallels for ARM. We can run the ARM version of Windows at speeds that rival a Windows for ARM device. Windows for ARM has code built into it (which runs) that will allow us to run 32 bit X86 programs. Microsoft is in the process of releasing a Windows for ARM version that will run 64 bit X86 Windows program and there is good reason to believe we will be able to run those as well.
I have been using Parallels for Mac for a number of years. My interest is not is running a Windows ARM version. I have number of Parallels VMs, Windows, Linux and Mac. At this point, it appears that the Parallels Team is abandoning support for legacy VMs in the era of M1 ARM Macs. As the number of ARM-based Macs increase, which is inevitable, it seems that the number of Parallels-equipped Macs will decrease. Not a good business model for Parallels.