Is there a way to run a macOS guest virtual machine on an M1 / Apple Silicon host?
The macOS guest on top of macOS host running ARM hardware is not supported officially by parallels.

https://www.parallels.com/eu/products/desktop/resources/

Today, there are five OS guest options with Parallels:

Windows 10 on ARM Insider Preview
Ubuntu 20.10, 20.04
Fedora Workstation 33-1.2
Debian GNU/Linux 10.7
Kali Linux 2021.1

Only Windows and Linux ARM OS run on the Apple Silicon (M1) production build.

https://www.vmware.com/products/fusion.html

The VMware Fusion hypervisor doesn’t officially support Apple Silicon (M1) yet.
Today, the answer is no supported macOs guests running on the commercial products with wide adoption.