Unable to use nested virtual machines on Monterey VM on Monterey host.
Problems (as I understand): Parallels using Apple Hypervisor.Framework does not enable/allow nested virtualization as virtual CPU does not report Intel VT-X support. macOS Monterey VM using Parallels hypervisor does not boot (regardless of status of Parallels Tools installation).
See also:
Parallels support ticket 3134478 (unfortunately only accessible to my account), awaiting reply as of 12 December 2021
Unable to use nested virtual machines on Monterey VM on Monterey host.
Problems (as I understand): Parallels using Apple Hypervisor.Framework does not enable/allow nested virtualization as virtual CPU does not report Intel VT-X support. macOS Monterey VM using Parallels hypervisor does not boot (regardless of status of Parallels Tools installation).
See also: