Keyboard Missing Keystrokes or Stuck Repeating Keys

Parallels 26.2.2 on an M5 MacBook Air running Tahoe 26.3.1. Brand new Windows VM (spun up another clean VM as well to confirm it is not an issue with my Windows install).

When typing quickly, a large number of keystrokes get dropped, and eventually it'll get hung up on repeating a single key, stopping only if I press several more keys or switch away from the Parallels application and switch back.

Doesn't happen pretty much at all if I purposely type slow.