As early as last December, Parallels released the Parallels Desktop 16 for M1 Macs technical preview program that aims to allow Parallels to run Windows systems on M1 Macs.
After installing Windows 10 on ARM with Parallels Desktop on M1 Mac, the built-in UWP applications including Microsoft Store, images, mail, and other applications will crash after opening, because the architecture is ARMv7 (32-bit), Qualcomm processor can run, but Apple Mac M1 processor cannot run normally.
Lately, I found that when opening these Windows 10 UWP apps, the upgrade box will pop up, and after the upgrade, they can be opened and used normally.
(Via)