Parallels is planning an ARM release[1]. This won’t run Intel arch Windows, but rather they hint that it will Windows for ARM64. They also mention Microsoft’s recent announcement that Windows for ARM will soon have the ability to run x64 (Intel arch) applications.
If you read that link, there is no hint at anything to do with Windows on there at all. It's quite a short press release, it makes no mention of what might be run inside parallels. I would expect linux to run, but Windows would be complete speculation.
I remember Intel "warning" that x86 emulation is riddled with IP/patents - now that they are falling behind I fully expect them to turn to milking competition by patent trolling - sort of like Microsoft back in the Android vs Windows Phone days.
The basic x64 patents were close to expiring at the time and may have expired by now. I suspect they were waiting for that to happen before releasing 64 bit support.
Those are weasel words. They are not saying parallels will run windows ARM. Read carefully and see what they're actually saying. There is not even a hint that parallels will run windows ARM on M1 macs, but the sequence of sentences creates the illusion of one.
Parallels, like vmware, is depending on microsoft here. If microsoft doesn't play ball there will be no windows on apple silicon macs. Currently there can be no officially supported way of running windows ARM on M1 macs, as the windows license does not allow it.
[1] https://www.parallels.com/blogs/parallels-desktop-apple-sili...