Parallels and Sequoia 15.3

On the Apple support forum I posted the following:
I recently installed macOS 15.3 and now my mac logs me off after a period of inactivity. I checked System Settings and the "Log out automatically after inactivity" is not set. How do I stop it from logging me off? Note that under Sonoma my screen would shut off after 5 minutes of inactivity and that's OK.

The solution turned out to be Parallels-related. Here is an excerpt of the solution I posted there:
When I shut down my mac, Parallels asks me if I want to open my VM when I restart my mac and I normally says yes. I tried it without reopening the VM at startup and I no longer have the log off problem, and restarting the VM later works fine.

 

I also encounter issues with virtual machines in 15.3. Some operations have become very slow, one application that worked fine before, does not work at all anymore. We need a fix for 15.3.

I also tested with VMWare and that has exactly the same issue since updating to 15.3.