Parallels blog:

It is important to note that currently available versions of Parallels® Desktop for Mac cannot run virtual machines on Mac with Apple M1 chip. Good news: A new version of Parallels Desktop for Mac that can run on Mac with Apple M1 chip is already in active development.

If you care about running Windows emulation on your Mac, this is worth reading. Worth noting, also, that Parallels is actively seeking M1 Mac owners to try out their Parallels M1 technical preview.