Resolving Network & USB Connectivity Issues in Parallels 16 for macOS Big Sur (“Network Initialization Failed”)

A large number of Big Sur users have encountered connectivity issues while trying to run Parallels 16 on their devices. While many forums have suggested running Parallels as root (by invoking sudo -b /path/to/Parallels/executable), this is by no means a permanent solution. Below is a far-better solution, suggested by RenatN on the Parallels forum, that will allow you to have a far better experience with Parallels.

Before proceeding, please remember to save your work and quit Parallels.

Network Fix

1. Launch Terminal, and invoke the following command: sudo nano /Library/Preferences/Parallels/network.desktop.xml
2. Find the line containing <UseKextless>X</UseKextless> (where X may be 1 or -1), and change X to 0. If it helps, you may use Control+W to open up the “Where Is” tool, where you may then input <UseKextless> and press Return to be taken to the appropriate line.
3. If you’re unable to find the aforementioned line, add the line <UseKextless>0</UseKextless> under the ParallelsNetworkConfig section.
4. Input Control+O to save the file, before entering Control+X to quit Nano. Alternatively, you may use Control+X followed by Y to quit Nano whilst saving changes.
5. Launch Parallels again. If the file was modified correctly, instructions will appear guiding you to allow Parallels to install the required drivers. Follow them closely, and restart your device when prompted.

Screenshot of ‘network.desktop.xml' after the necessary modifications, for reference.

Networking Bug, Explained

Developers of Parallels 16 are transitioning from kernel extensions to system extensions. While this transition has been largely successful in older operating systems, it hasn’t been nearly as smooth-sailing on Big Sur.

USB Fix

1. Launch Terminal, and invoke the following command: sudo nano /Library/Preferences/Parallels/dispatcher.desktop.xml
2. Find the string <Usb>0</Usb> and replace it with <Usb>1</Usb>. You may use the “Where Is” tool for this, as referenced in the Networking Fix above.
3. Re-launch Parallels.

USB Issue, Explained

This is likely a developer oversight on Parallels’ part, and could have easily been mitigated if Parallels had provided proper documentation for their configuration files to end users.

When could we expect Parallels to officially resolve this?

As of the time of writing, Parallels has yet to acknowledge the aforementioned issues. This has forced many customers to flock over to the forums, where little help could be provided by support staff.

Once again, huge props to RenatN on the Parallels Forum for having independently resolved and shared a proper solution to this much-dreaded bug.

You may find the original post here: https://forum.parallels.com/threads/network-initialization-failed.345647/page-11