While Parallels hasn't addressed this yet, I think it's only fair to mention that this is just about "reserving" Windows 10. When July 29 rolls around, the update will be available to all (who qualify, obviously). All the reservation does is pre-load the software on your Windows 7/8/8.1 VM so that you can proceed without having to go online and hitting the expected traffic jam.
What I find odd is that my issue began when I created a SECOND VM of Windows 7 Pro using my licensed disk. I wanted to "preserve" my original VM and try out Windows 10 (I also have the "insider preview") so I created a fresh install and this is when the issue started. To recap: My *original* VM of Windows 7 Pro does not report the WDDM driver issue. Go figure.