When Parallels is running, by default you have your Mac Downloads, Documents and Home folders available inside the Windows VM (typically as X;, Y: and Z: drives), and you also have the Windows VM's C: drive mounted as a volume available to Mac OSX. Hence there is no need to allocate a lot of storage space to the VM, unless there is a reason to keep it separate from the host filesystem.
Cheers
Steffen.
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