Symptoms

Error message "Hdd file is missing, corrupted, or used by other application" appears upon virtual machine startup.

Resolution

2. Right-click (CTRL+click for “Mac” mouse or SHIFT+CTRL+click for “Mac” mouse) on the .hdd file and select "Show Package Contents".

You will see .xml and .hds files.

3. Copy (not drag and drop)  .hds file and paste it in your Virtual Machine folder.

Note:If you have more than one .hds file it means that you have snapshots and this action is not recommended. However you can use the oldest .hds file but in this case you most likely will get your virtual mahcine to the state when it was at the moment when this snapshot was created.

4. Go to that folder and right-click the .hds file and select "Get Info".

5. In the field “Name & Extension”, delete the name and enter "windows.hdd". Close this window. You will get a confirmation message. Click "Use .hdd".

Open the virtual machine configuration (do not start windows) from Macintosh HD -> Applications -> Parallels -> Parallels Desktop icon. In case your Windows starts automatically, press and hold “Apple” key and simultaneously click on Parallels Desktop icon again.

6. Choose "Edit" from the Parallels Desktop menu and select "Virtual Machine..."

7. Click Hard Disk 1 -and then click the  Browse button.

8. Navigate to Macintosh HD -> Users -> [your user name]("house" icon) -> Documents (Library) -> Parallels and open the folder with the name of your Virtual Machine (VM). Select the “windows.hdd” and click the “Open” button.

9. You should get a message about your drive being converted. Continue with the conversion.

10. When it is finished, click “OK”.

11.  Start your VM clicking the   Start button.