No sound in Win11 after updating to Parallels 20 & MacOS Sequoia 15 on MBP M3 Max

MarsupialG

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Hi! I have been using Windows 11 on Parallels 19 on a MacBook Pro M3 Max with no issues, but after updating my MacBook Pro to the new Sequoia 15.0.1 and updating Parallels to 20.0.1, suddenly there is no sound coming from the VM. When I try testing audio in Windows, the tests explicitly state that they fail and no sound is heard. Sound is working fine on my Mac. I have tried:
-Giving Parallels full disk access on the Mac
-Uninstalling and reinstalling Parallels tools
-Checking all settings, turning off and on sound in the Parallels settings for the VM
-Checking for driver updates in Windows

The "High Definition Audio" device is showing in Windows as installed and working and selected as the audio output, but no sound comes out and testing the device fails. I do see this in the event viewer:

Fault bucket 127900527555, type 5
Event Name: ScriptedDiagFailure
Response: Not available
Cab Id: 0

Problem signature:
P1: Microsoft Corporation.AudioPlaybackDiagnostic.4.5
P2: RC_AudioServiceResponse/DefaultInstanceId
P3: 1.0.0.0
P4: Default
P5:
P6:
P7:
P8:
P9:
P10:
 
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