DPI scaling settings in Windows virtual machine

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Information

Parallels Desktop application has three different settings for graphics

Best for Retina

In this mode Windows resolution on external non-retina displays is artificially quadrupled. If the scaling is set to 125% on Retina display - text is too tiny which cannot be changed within Parallels virtualized environment.Windows applications which support DPI scaling should look as good as native macOS apps.

Scaled

In this mode every Windows pixel is quadrupled. Windows resolution and DPI setting don't change. Still being contrasted to native retina applications it appears fuzzy and pixelated

Best for external displays

In this mode you have more control over scaling factor but Windows applications still require full support of DPI scaling.

Parallels Desktop 15 brings a brand new feature which automatically detects the external display(s) connected to a Mac with Retina display and switches your graphics configuration from Best for Retina to Best for external displays mode.

For more information regarding resolution issues please see KB 114700

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