Hi @StevenP13, thanks for the report ID! We have reproduced the issue. It will be resolved in a next update. Stay tuned!I have the same issue. I am using latest Mojave
My Privacy setting are set to ALL my Microphone to Parallels Desktop.
In my Configuration of my VM under the sound tab, I see both my input and output set to my proper Audio source.
When change from Mute to my source, I get the image show above and it resets it to MUTE.
I sent a report to Parallels.
A technical report with the ID number 284490492 has been sent to Parallels.