Legacy System Extension warning when starting Parallels Desktop

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After installing/upgrading macOS® to a newer version, upon starting Parallels Desktop, you may receive the following notification:

Legacy System Extension
Existing software on your system loaded a system extension signed by "Parallels International GmbH" which will be incompatible with a future version of macOS. Contact the developer for support.

Information

On Mac computers with Intel processors, Parallels Desktop uses its system extensions to provide you with the best performance, functionality, and seamless experience. Parallels works closely with Apple® to ensure that Parallels Desktop continues to function in future releases of macOS.

Starting with macOS Big Sur, you can switch from Parallels to Apple system extensions:

1. Shut down the virtual machine via Actions > Shut Down.
2. Open the virtual machine's configuration (click Parallels Desktop icon on the Mac menu bar  > Control Center > right click on the virtual machine > Configure).
3. Go to Hardware > CPU & Memory > Advanced Settings > and change Hypervisor to Apple.

Note: Parallels hypervisor enables some advanced features, such as nested virtualization. Therefore, switching to Apple hypervisor may not be advisable in cases when these features are essential.

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