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No-one forced the OP to upgrade OS X to Mavericks though, right? And without that upgrade, the relatively recent product would not have demanded anything and would have continued to work just fine.

Nope, sorry. It's always the other way around. You cannot expect from your customers to hold back operating system upgrades just because you don't feel like spending time to make your application compatible with the new OS.

It's understandable for some older applications to not be compatible with a newly released OS (we cannot expect updated s/w to get updated for ever, for free), but this doesn't stand true for a 2-year old application. It's all about forcing users to upgrade Parallels - that's crystal clear.
 
I made a complaint to parallels they haven't replied yet...2 weeks has passed.
What should I do now..?

You have many choices. Pick one.
  1. Revert back to Mountain Lion so you can run a two generation old program
  2. Upgrade to Parallels 9
  3. Upgrade to Parallels 8 which you can probably buy at a low price. But it probably won't work with OS X 10.10 later this year.
  4. Switch to VMWare Fusion and deal with its issues
  5. Bootcamp!
 
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