I searched the net and found the answer.
It was a bit of a pain to find, but here it is.
In order to not have roles and features fail immediately, you have to shut down the Virtual Server, then open Parallels to configure the VM on the Mac, select Options and click on Sharing. Then de-select the check box for "Share Mac users folder with windows" and all other checkboxes on this screen. Then select Share Windows and de-select the "Acess Windows folder from Mac".
Boot up the VM Server and the roles and features will work correctly!