Surprisingly, the ARM OS installed without a complaint, but when I tried to install Parallels Tools, I get:
Official response: In addition to our local tests regarding Open Suse running on M series inside Parallels, further investigation + testings resulted in the following conclusions : 1. Open Suse is officially unsupported on M Arm Mac series due to Parallels tools agents and compilers missing to mount over that system. As a result, only Intel Mac currently can accommodate Linux virtual machines at its fullest (including parameters for configuration, kernel and X64 processors with Nested virtualisation) For that reason, Parallels tools keep crashing on M series while on Intel, during observation, Linux virtual machines manually accepted Parallels tools installation. As we do not have any formal exact time to resolution, Parallels desktop depending heavily on Apple architectures, for Linux over M series, we are attaching all virtual machines that you may run over Mac via Parallels: We wish to thank you for all your constructive responses and assisting us over internal analysis.