I upgraded my parallels from ~12 to v19 AND updated my computer from intel mac to M3 macbook air. Obviously none of my windows VMs work. But, I installed a brand new MacOS VM. But, when I boot the VM, none of the local mac hardware is available... most importantly the camera (other stuff would be nice as well... like usb or bluetooth). What's weird is that none of the hardware is available AT ALL in the settings... its not like I just didn't enable it. Ideas?
I figured this out. It turns out that MacOS virtualized on MacOS does not support USB devices beyond trackpad/keyboard. Details here: https://kb.parallels.com/128867