Some of you want to use Windows Subsystem for Linux (WSL) inside Windows virtual machines. Below you can find information that can help you avoid confusion when dealing with WSL in Parallels Desktop.
WSL 2 Support
WSL 2 is currently supported in Parallels Desktop running only on Mac computers with Intel processors. To run WSL 2 inside a Windows virtual machine in Parallels Desktop, you need to enable nested virtualization. You can enable it as described in KB 116239.
On Mac computers with M series chips, nested virtualization isn't supported yet. That's why you can't run WSL 2 on these computers. We keep working together with our partners from Apple® to support nested virtualization for Mac computers with M series chips.
WSL 1 Support
To run WSL 1 inside a Windows virtual machine in Parallels Desktop you don't need to enable nested virtualization that's why it's supported on Mac computers either with M series chips or with Intel processors.
To downgrade the WSL version to WSL 1, you can execute the command below in Power Shell or Windows Command Prompt: