Environment: Sierra OS running Parallel 12 with a Sierra OS Virtual Image. Mac 5K Retina with 32GB. When running Word office 365 in the VM and highlight text it won't show you what you highlighted. Also when copy and pasting images between Office applications sometimes the colors are changed
Please try reinstalling Parallels Tools from Mac menu Actions > Reinstall Parallels Tools. If the issue still persists, please try reinstalling Microsoft Office 365 and keep us posted the result.