You may experience a loss of internet connection in your macOS virtual machine (VM) following an upgrade of Parallels Desktop, coupled with a subsequent Parallels Tools update. The issue is attributed to VM misconfiguration and can be resolved by applying the proper configuration.

Resolution

1. Start Parallels Desktop.

2. Shut down the VM. Make sure that the virtual machine is shut down. If it is in a suspended state, please run it and then shut it down (Actions > Shut Down)

3. Open the VM configuration.

4. Switch to the Hardware tab and select Network from the list.

5. Expand the Advanced Settings menu and change the Type option to 'Intel(R) PRO/1000 MT'.

Note: This step is only applicable to MacOS versions preceding macOS Big Sur 11.0.

6. Start the VM and perform DHCP to refresh the assigned IP address: System Preferences > Network > Advanced button > Renew DHCP Lease > OK.

7. Check the internet connection to ensure it is working correctly.