LSA Protection Error with Parallels SSO Module on Windows 11 24H2

Wondering if anyone else here is running into the same issue we are with Parallels Client and Windows 11 24H2?

We're in the process of testing 24H2 internally, but we've hit a roadblock with SSO module in Parallels Client. On a clean install, the SSO option doesn't even show up unless you enable MPR notifications via the registry (which is noted in Parallels' documentation).
Once enabled, SSO works functionally - but Windows Security throws up a red flag:


We've already raised this with Parallels and tried the recommended workaround of disabling some form of LSA protection using the RunAsPPL registry key. Unsurprisingly, that didn't fix the warning - and honestly, disabling LSA isn't something we're willing to do across the estate. It weakens endpoint security, and with Microsoft tightening the screws on LSA enforcement in newer builds, it's just not sustainable.

Right now, this is completely blocking our upgrade path to 24H2. We can't greenlight deployment while a security warning is being thrown on login, especially one tied to something as core as authentication.

Would really appreciate hearing from others in the same boat. We're keen to move forward but don't want to compromise on security just to keep SSO working.