Starting with Parallels Desktop 17.1 update, we introduce the support for Bridged network mode in macOS Monterey 12 virtual machine on a Mac with Apple M1 chip. This option might also be used as a workaround for cases when a macOS virtual machine (VM) on a Mac with Apple M1 chip has no network connection.

To enable the Bridged mode, please perform the following steps:  

1. Shut down your virtual machine.
2. Locate the virtual machine .macvm file: click on Parallels icon || > Control Center > right-click on the virtual machine > Show in Finder. 
3. Right-click .macvm bundle > Show package contents.
4. Locate config.ini file. If it doesn't exist, open Terminal (Applications > Utilities > Terminal) and execute the following command:

   touch ~/Desktop/config.ini

   This will create a config.ini file on your Mac Desktop. Drag and drop it inside the .macvm bundle.
    
5. Open the file in TextEdit: right-click config.ini > Open With > Other, check Enable All Applications select Text Edit, and click Open.
   
   
6. Add the following text:

   [Hardware]
   Network.Type = 2

7. Close the file, saving changes by clicking Command + S. Run the virtual machine.

If you want to switch back to the Shared network mode, change this part to:

[Hardware]
Network.Type = 1

and restart the virtual machine.

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