I upgraded my macOS to Catalina and Capture Area Tool ceased to work.
Insufficient permissions for Parallels Toolbox.
To resolve the issue give Parallels Toolbox the ability to record the screen in System Preferences:
- Go to System Preferences > Security and Privacy > Privacy.
- Select Screen Recording in the list on the left and then turn On checkbox near Parallels Toolbox item.
- Once prompted click Quit Now button to apply changes.
- Start Parallels Toolbox again.