[RESOLVED] Can't use Apple ID for macOS VM on Apple Silicon / MacBook Pro M3

same here: parallels 20.2.0, macOS 15.1.1 on host and macOS 15.1.1 in VM.
After <enter> on Apple ID password I get "An unknown error occurred".

 

The macOS Sequoia VM is useless because all I get are repeating dialogs that the
User name or password is incorrect
No menubar, no dock, and it's userless.

 

I an on 2.6 GHz 6-Core Intel Core i7 and cannot use the VM due to the constantly appearing modals that the user name or password is incorrect. It is not.

 

Is this ever going to work?