To get a basic install going on Apple Silicon Macs... 1. Download ISO for arm64 from Canonical Site 2. Create a new VM, install from ISO and choose the ISO that was downloaded 3. Install using default settings 4. After final reboot, you'll notice GUI is missing. 5. Log into terminal session and type: sudo apt update sudo apt install --reinstall gdm3 ubuntu-desktop sudo systemctl restart gdm3 6. GUI should start. 7. Install parallels tool from 'Actions' menu 8. Done.
When using external monitors, Parallels 26.3.3 (57507) resets the display scale factor to 100% with every reboot. Changing the scale factor using the Settings GUI when you have two external monitors is glitchy too. As soon as you change the scale factor of one monitor and accept the change, mouse clicks land at a different screen offset than the graphical mouse pointer. So be aware if you upgrade and have external monitors.