SymptomsEvery time you start Parallels Desktop from Applications it asks to create new virtual machine while a virtual machine already exists.
CauseParallels Desktop stores a hidden file in users documents with the name .parallels-vm-directory. In this file the application keeps all symbolic links to configuration files of existing virtual machines (VMs).
If some symbolic link points to non-existing configuration file Parallels Desktop is not able to start the VM, even if it exist. If the machine is the only one present or all symbolic links appear to be broken, Parallels Desktop asks to create new VM.
Resolution1. Close Parallels Desktop
2. Remove the following Parallels Desktop preferences lists from Macintosh HD/Users/<your user name>/Library/Preferences folder:
3. Remove broken .parallels-vm-directory file:
Open Terminal application from Finder -> Applications -> Utilities and copy/paste there:
Hit Return. Copy/paste:
rm -rf .parallels-vm-directory
4. Restart Parallels Desktop application. It will create new default preferences lists and new .parallels-vm-directory file on the base of these lists.