Unable to convert the virtual hard disk to the new format. The virtual hard disk file is either damaged or locked.

Parallels 16, Intel MacBook Pro, macOS 11 Big Sur

Error while attempting to create Mac OS X 10.10 Yosemite VM.

Followed by this error “Parallels Desktop Starting…” message after quit and relaunch.

Then producing this “To complete Parallels Desktop setup, please restart your Mac.” error.

Rinse. Lather. Repeat… Joy. -rws

Never surrender. Never give up.