In short - this is not officially supported. For a workaround, refer to
be advised that Windows Home Edition isn't officially supported by Microsoft to run on M-Series Mac computers, while Windows 11 Pro Edition is. You can run Windows 11 Home Edition at your own risk, you will not be eligible for support from Microsoft should you have any problems with your Windows installation. If you acknowledge and accept the risks, you can perform the steps below to create such a virtual machine: 1. Download Windows 11 24H2 ISO from Microsoft: Windows 11 Arm on M-chip Macbooks - www.microsoft.com/en-us/software-download/windows11arm64 2. Once downloading of the image is completed, terminate the installation and delete your virtual machine from Control Center (right-click the virtual machine name > Remove). 3. Run Parallels Desktop, then click on the Parallels icon in the Mac menu bar > Control Center > + > 'Install Windows or another OS from a DVD or image file' > select the image > Continue > in the dropdown menu select Windows Home Edition > follow on-screen instructions.
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hth
Marcin