As a followup, it looks like running this command sets <Type>0</Type>:
prlctl set <VM-NAME> --video-adapter-type parallels
And running this command sets <Type>2</Type>:
prlctl set <VM-NAME> --video-adapter-type apple
So - while I thought this was originally an issue with my application, it actually appears to likely be an issue with the parallels (CPU-based) video adapter as opposed to the optimized apple-provided virtual video adapter.