It's Parallels 7 on OS X 10.8 (Mountain Lion). This actually used to be a smaller drive (50GB) that at one point was resized to 100GB.
It's not set to compress, but even without that setting, why would a 100GB raw drive space require 168GB, never mind the fact that it's using only 70GB at the moment. I can imagine some optimization and implementation details that might make it so, but if that's the case it makes it impossible to plan how much drive space you'll need for a given VM.