This is a long-standing issue, but there is a possible work around that works for me. (Your mileage may vary):
I have a 2018 intel Mac, running MacOS 14.4, Parallels 19.3, with an older VM running MacOS 11. I hadn't opened the VM in a long time, and wanted to do a software update. The VM opened, and Parallels Tools updated (reinstalled), and the VM rebooted. If I try Apple Software Update in the VM (from 11.6 to 11.7.10) it gets stuck on the black screen with the white Apple logo and progress bar.
The solution I use is a very simple edit of the VM's configuration file in any plain text editor (I use BBEdit). Your mileage may vary.
1. Shut down your VM
2. Add the following 2 boot flags in Configuration > Hardware > Boot Order > Advanced > Boot Flags:
devices.smbios.board_id=default
devices.usb.speed.keyboard=high
3. Find the VM file (.pvm) in your Parallels folder (usually in your User folder):
- Right-click on the .pvm file
- Choose "Show Package Contents"
- Open the "Config.pvs" file in TextEdit (I use BBEdit)
- Search for "
VideoMemorySize_patch" which is around line 486 in my current file)... you should see something like this:
<Video NativeScalingInGuest_patch="" dyn_lists="" VideoMemorySize_patch="1" ApertureOnlyCapable_patch="2">
<Enabled>1</Enabled>
<Type>2</Type>
... change the "Type" value from 2 (or whatever it is) to 0 (zero), save and close the file, and close the Finder window to get out of Package Contents.
- Open Parallels and open the VM, and check for software updates, allow to install.
4. If the VM successfully performs Apple Software Update and reboots, then shut down the VM again, go back in to Step 3, and change the "Type" back to 2 (or whatever it was before) from zero (so that video in the VM will perform properly). I have no idea why this works, it was suggested by someone back in this thread:
https://forum.parallels.com/threads/macos-11-01-not-updating-to-11-2.352462/