Mouse and Keyboard non-responsive on Windows 11

The mouse and Keyboard are completely unresponsive and don't work.
I am running a MacBook Pro 13" M1 with Monterey 12.4

I have seen other people run into this after steam was installed. I have tried all the changes about taking away optimization for keyboard and mouse for gaming, doesn't fix it. I tried to reinstalling the Parallel tools, this also did not work.

When I click into the window I lose keyboard and mouse functionality, but when I click Ctrl + Alt, I can at least get the keyboard and mouse out so I can use them again on my Mac.