I had this problem in 2022, with all sound from the Windows 11 VM suffering distortion. I tried a load of things but could not find a fix. I gave up on Parallels.
It's now 2024 and I thought I'd give Parallels another try on my M1 Mac mini. Same problem.
I then tried VMWare. Initially the same problem was there but after installing VMWare tools the sound was fine. So, Cleverbridge, what are VMWare doing that you are not?
I've cancelled my Parallels subscription and switched to VMWare instead.