I have a working macOS 10.13.1 Parallels guest into which I installed Docker for Mac. The install went fine but when I try to start docker I get a message that says "Fatal Error - incompatible CPU detected - docker requires a processor with virtualization capabilities" . (see attached image for the screen shot) I have tried both Parallels and Apple virtualization in the advanced setting of the CPU settings. Nothing seems to work and I'm confused because I didn't have any problem doing this in a VMware Fusion VM. Is this supported under Parallels (13.1.1 Pro in case the version matters)? Thanks!
In VM configuration -> Hardware -> Boot Order -> Advanced Settings -> Boot Flags add string "kernel.nvmx.enable=1".
In 2021 running the most recent Parallels (Pro also), I also had to change hypervisor to "Parallels". "Apple" did not work.
I should perhaps mention that was a somewhat unusual configuration; running Mojave in a VM on a 2021 MBP. I don't know if that mattered or not.