Hi,
I encountered the same problem. I read the discussion on this track and tried every suggestion and it still doesn't work.
My situations:
1) Mac OS X El Capitan (10.11.1)
2) Parallels Desktop 11.1.1 (32312)
3) Windows VM (Windows 10)
Recently after click upgrade Parallels tools and thereafter whenever I tried to start Windows 10 VM I get the following message:
Windows cannot access \\Mac\Home\Desktop
and it hangs there.
I shut down the VM. I deselect the "Shared Profile". I tried to start the Windows VM again but I keep getting message. I can't do diagnostic or cancel the VM. Only things that I can do is to suspense or shut it down. Therefore I am unable to do a lot of other suggestion such as de-installing Parallels Tools and re-install it.
Any suggestion? How can I bypass this so that VM can be started, then I can fix the Parallels tools issue. Any suggestions would be most appreciated.
HM