Parallels does not currently run on M1 Macs. They say that the new version is in active development and it will support the M1. That means that if you must run Windows apps that don't have a Mac version then you might want to wait and see. Rosetta 2 allows the M1 Macs to run Mac software designed for the Intel Macs, not Windows software. You might also look over what the Crossover team is doing if that's something that you need.