Wanted to make sure this is possible before I go searching for solutions. I attempted this with a USB mountain lion boot install and during the parallels setup, received some Boot Failed EFI... messages.
Hi Tom, yes, you can install Mac OS X 10.9 as a guest in Parallels Desktop 11 for Mac. Parallels Engineering team has fixed this issue in the Parallels Desktop 11 for Mac version 11.0.2 build 31348. Please make sure that you are running the latest update of Parallels Desktop 11 for Mac.
Damn. I just can't get this to work. I've created a USB 10.8 install using several different methods and continue to get this error.