When you are trying to install Parallels Tools, you might get the following error:
The issue is caused by the fact the Parallels Tools .iso file isn't mounted to the virtual machine.
Perform the following steps to solve the issue:
1. Shut down the virtual machine (Actions > Shut Down).
2. Open the virtual machine's configuration > Hardware.
3. Click on the "+" sign and add "CD/DVD".
4. Run your virtual machine.
5. Try installing Parallels Tools: right-click the virtual machine icon in Dock > Actions > Install Parallels Tools).
6. If the installation does not start, click on File Explorer inside the virtual machine and double-click on DVD Drive Parallels Tools to initiate the installation process.