Microsoft announces support for running Windows on Apple Silicon Macs with Parallels software.
Some limitations still apply – Microsoft does not support running Windows Subsystem for Android, Windows Subsystem for Linux, Windows Sandbox and Virtualization-based Security when Windows 11 is running in virtualized environment.
Microsoft Support: Options for using Windows 11 with Mac® computers with Apple® M1® and M2™ chips
Alludo: Parallels Desktop Now an Authorized Solution to Use With Windows 11 on Mac With Apple Silicon
Reference: Microsoft announces full support for virtualization of Windows on ARM through Parallels Desktop 18