In Finder on my Mac, I show 7 different instances of [C] Windows 7 on the left side under Favorites. If I click on 6 of these, I get the error message "There was a problem connecting to the server "localhost". Why do I have so many instances?
I was having the same problem, but when I upgraded to Parallels 12 (because I upgraded the Mac OS to Sierra), the problem went away.