USB not connecting to VM

I have a Macmini M4pro (Sequoia 15.3) with Parallels 20.2.0 installed. In a VM I also have Sequoia 15.3 installed. Everything works instead of USB devices. If I connect an USB device (like USB Stick or iPhone) nothing happens in the VM. In the host system it connects but not in the VM. I could not find how to connect it to the VM. In the past on my Intel Mac there was a window where I could manage where to connect the USB device. I'm missing this.

 

I have been using Parallels 14-20 on a MPB 2018/Intel, now running Sonoma, and use it to run SigmaStudio for development. SigmaStudio connects to a USB device to program DSPs. I just got a new M4 MBP/Sequoia 15.2 and upgraded Parallels to 20/M4/Win11 and tried to connect to the USB to the VM, it does not work. So I have the SAME issue as you do. The popup asks where to connect the USB device to and I connect it to the VM, but connection is not there. This has been running perfectly well for years and is now broken. What is the fix? TIA

 

@ PeterB86 I even did not get this popup where to connect.
@ Avinash Bundhoo My report number is: 483282424

 

I tried now Windows 11 ARM and I have no problem with USB devices connecting to the VM. It seems, there is a problem with MacOS as a guest system.