You know, it's pretty ridiculous that we have to have someone (sunscan) not related to Parallels in any way to fix our problem for us. I did not pay $80 to have common versions of OSs not be compatible with the VM. Moreover, I paid for the product to avoid hassles just like this one. Honestly, this seems like a pretty easy fix for a company with teams of software engineers who's job it is to make sure this program works properly. I gotta say if Parallels keeps giving me problems I will just boot off a USB.
I recently upgraded to PDM v12 Pro and built a new Kali 2016.2 VM and this issue resurfaced again so it is still not fixed. Thanks to suncsan for the fix!
Happens on OpenSuSE also .. I guess I am off to VMWare after all these years of Parallels. I can't afford the hassle every new release - its dollars out of my pocket.
i have updated parallels today (to version 12.1.2 - 41525) and it seems that it (mouse with parallels-tools) works now ...