Unable to set custom resolution scaling in Windows virtual machine on Retina after upgrade to Parallels Desktop 12 for Mac

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Symptoms

Cause

To improve dynamic resolution of Windows virtual machine on Retina display in Parallels Desktop 12 for Mac, 'Best for Retina' option is now keeping the resolution scaling at 200%.

Resolution

If you want to manage resolution scaling settings in Windows virtual machine, please change resolution settings of the virtual machine to Scaled (VM configuration > Hardware > Graphics)

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