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This tries to run a nested virtualization scenario and Apple does not have this instruction set available on the M1 series of Apple Silicon devices.

The catch or hang up that people are hitting is when they try to use "Docker Desktop" on Ubuntu (instead of directly on macOS). There was a question below about whether or not Docker can work with Ubuntu 22.04 on Apple Silicon. Expand Parallels Desktop.app/Contents/Resources/Tools/.Navigate to /Applications/ and change to List view.Note: initially I installed Parallels Tools before installing the graphical user interface, but if you install it after the installation of ubuntu-desktop or even kde-standard/full/whatever then copy paste, etc.Use ISO: mount Parallels ARM64 tools ISO and install: Menubar → Actions → Install Parallels Tools.Parallels Tools Installation: two options.Login and install: sudo apt install ubuntu-desktop.Update System sudo apt update & sudo apt upgrade then sudo reboot.Install with the ISO when creating a new guest/vm in Parallels 17.Download the ARM64 Server edition from:.Some were confused, here's a complete screencast of the process outlined below: Your mileage may vary, but it could perhaps work outright as this other user has indicated. UPDATE 2: A non-public (not on their main website) release of the arm64 Desktop version is now available on the dail-live folder: