Windows 11 VM on Parallels has broken virtual TPM.

Same for me, Uninstalling KB510650 will bring back up and running TPM. All work security features are back and working (PIN, BL, VPN, etc.).
I guess we need a Hotfix from Parallels for that...

 

Also experiencing this issue both on a personal VM and a work one. Personal I managed to reset my PIN ok on boot when prompted but started getting some authentication issues with some applications. Work enrolled VM was exactly the same as others have reported. Rolling back KB510650 temporarily 'fixed' this, but there are of course a lot of security components to that update that I'd like applied to my machine. Hopeful that Parallels will issue a fix soon. Doesn't appear to affect other VMs on different hardware/platforms or windows running on bare metal.

 

This is what I see pre and post:

With KB installed:
- Get-Tpm: 0x80280095, structure is wrong size
- tpm.msc crashed
- Manufacturer: SLRP
- Specification: Unknown
- Microsoft 365 TPM authentication failed

After KB uninstall:
- Microsoft 365 authentication works
- tpm.msc: TPM ready for use
- Manufacturer: PRLS
- Specification: 2.0
- tpmtool and Win32_Tpm return valid information
- Get-Tpm alone still returns 0x80284005 (Get-Tpm : A specified output buffer is too small. (Exception from HRESULT: 0x80284005))