Windows hangs at Welcome screen and does not boot

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Symptoms

Windows 7 or Windows 8 virtual machines hangs at Welcome screen and does not boot to Desktop. The issue usually occurs if Windows is connected to a domain and Parallels Desktop was updated or upgraded.

Resolution

  1. Shut down the virtual machine
  2. Open virtual machine's Configuration
  3. Go to Options tab > Sharing
  4. Uncheck Share Mac user folders with Windows

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