Just upgraded to 17.0.1 from 17.0.0 and any new Ubuntu Server 20.04(and other versions) VMs I create hang on boot until I temporarily attach an image to the CDROM, after which it boots right up. I thought it might be a number of things but couldn't understand why it was happening until I decided to try an old VM I created with the previous version of Parallels and saw it didn't have the issue even though it was the same install image. Currently I decided to revert back to the previous version of Parallels using Time Machine and I no longer have this problem when creating new machines.

