@iceman05 what OS and architecture are you virtualising in Parralels?
We run an arm64 Debian development environment virtualised in Parralels on M1 Macs and it works well.
Perhaps you are virtualising a strange architecture? Or some weird OS that Docker isn’t able to detect properly? Could you also give me the exact version of Umbrel you are running and let me know how you downloaded it?
Also what’s the output of uname -a from inside your VM? I get this from Debian arm64 inside Parallels:
$ uname -a
Linux umbrel-dev 4.19.0-16-arm64 #1 SMP Debian 4.19.181-1 (2021-03-19) aarch64 GNU/Linux
Oh and what version of Docker are you running too?