When running Microsoft Office in Windows ARM on a Mac computer with Apple M1 Chip, you may encounter difficulties saving files. It can either be an error, or a destination folder resetting to "Network Shortcuts".

Similar behavior may also occur in some other applications.

Solution

To fix this situation, please perform the following steps:

1. In Windows, download this archive. 

2. Unpack prl_np.dll inside it.

3. Go to C:\windows\system32\ and locate a prl_np.dll file already located in this folder. 

4. Rename prl_np.dll to something else (e.g., "prl_np.d").

5. Then move the prl_np.dll file downloaded earlier into C:\windows\system32\

6. Restart the respective Microsoft Office application.

Note. Reinstalling Parallels Tools will revert this workaround, and the behavior will reoccur. A permanent fix will be included in an upcoming Parallels Desktop update.