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:
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