Resolution
To do it,
1. Shut down your virtual machine if it is currently running.
2. Click on Parallels Desktop top menu > Virtual machine > Configure or on Configure button on virtual machine panel.
3. Switch to General tab and in Processors drop-down list set virtual machine CPU number to 1.
4. Press OK to save changes and start the virtual machine. This time it should boot normally.
5. Login and wait while Parallels Tools are being installed.
After Parallels Tools are installed, it is safe to return the previous CPU settings.