Does parallels install windows on the mac partition

MichaelP12

Bit poster
Hi. I have been having problems activating windows. It says I windows is being run by 2 computers. I think "no it is only on one computer". But then I discover under user/applications (parallels) what appear to be windows files. So is Parallels making a copy from bootcamp and installing it on the mac partition. Then windows thinks (correctly it would appear) that windows is being run by two computers and will not allow activation.
 
I did just find an article comparing parallels and bootcamp which said "Installing the same copy of an operating system on Bootcamp and Parallels will require separate or multiple licenses." Is this true? Fits with my experience with activating windows.
 
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