Starting with Parallels Desktop 20.2 an early preview of emulation feature has been introduced. The feature is in early preview stage and has some limitations, please check the following article for details.
This article reviews a specific error that could occur when trying to start a migrated virtual machine in emulation mode:
This is one of the limitations of emulation, if the migrated virtual machine was not shut down or stopped before moving, it will not be able to start in that state, in this case as message suggests, pick one of the approaches that suit you:
Cancel: If you have unsaved important data, like an open document in virtual machine, click Cancel and transfer it to Intel Mac, start it save the data and shut down the machine before importing it again.
Reset: If you do not have anything important in the virtual machine, you can click Reset, and the virtual machine will be reset, losing anything that was running when it was suspended, but starting when next attempted on Apple silicon without the need to re-transfer it.
In addition, it's worth noting, that when stopped, the transferred virtual machine starts on Apple silicon, due to emulation limitation of only supporting single virtual CPU, it will automatically reset the configuration of the virtual machine to match this. Meaning, that if you transferred it with more than one CPU assigned to virtual machine, it will just switch this value to one.
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