Symptoms
I am unable to start the virtual machine. Virtual machine fails to start with the pop-up error message: "The virtual machine cannot be started due to a critical error: Problem ID: 68".

Logs
If you find in vm.log or in parallels.log in Console these strings, follow the resolution:
07-12 13:34:49.103 F /disp:1553:b2cf/ Handshake timeout( 60 sec ) elapsed for vm Windows XP {5fde08e1-2c29-40d7-9c1b-c69729cc887f}
07-12 13:34:49.103 W /disp:1553:b2cf/ UnregisterVm succeeded: uuid = {5fde08e1-2c29-40d7-9c1b-c69729cc887f}, name = 'Windows XP'
07-12 13:34:49.104 F /disp:1553:b2cf/ CDspVmProcessMonitor: send error 0x80000068 PRL_ERR_VM_PROCESS_IS_NOT_STARTED
07-12 13:34:49.104 F /gui:2789:c07/ localhost: received event PET_DSP_EVT_VM_STOPPED, code = [100008]
07-12 13:34:49.105 F /gui:2789:c07/ localhost: received result for [DspCmdVmStart]. RC = [PRL_ERR_VM_PROCESS_IS_NOT_STARTED]
Cause
The root cause of the issue is under investigation.
Workaround #1
Possible steps to resolve the issue:
- Restart the Virtual Machine.
- Reboot the Mac
- Uninstall any antivirus/firewall/other security software
- Create a new user account and check with it.
Workaround #2
Create new virtual machine and connect existing hard drive.
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