After Parallels Desktop upgrade Mountain Lion virtual machine starts with kernel panic error message:
CHUD kernel extension failure
- Make sure virtual machine is shut down.
Open virtual machine configuration > switch to Hardware tab > Boot Order > expand Advanced Settings pane and paste the following flag in Boot flags textbox:
- Close configuration window and start virtual machine.
Open Terminal application inside virtual machine ( Applications > Utilities > Terminal) and execute the following command:
sudo rm -rf /System/Library/Extensions/CHUD*.kext
NOTE: It will remove all CHUD kernel extensions that apparently cause the problem.
- Shut down virtual machine and delete system flag applied in step 3.
- Run virtual machine.