I went through all the post, tried most of them and a lot of them were not making any sense. Unfortunately I cannot come up with the exact way I solved the issue but here is what I did.
- Delete your actual VM, it is no good.
- Update your Parallels Desktop, I am working with 8.0.18608.
- Create the VM using a brand new downloaded ISO for which I used a
download manager (ex. Folx)
- Recreate your VM, it workes just fine for me.
Honestly I don't think the iso file is the problem. If I were you I would try with the one you have right now. After I updated my Parallels it wasn't working until I realized I was still trying to install with the VM I created with the previous version. When I deleted and created a new one it worked.
So if you are reading this, just update your Parallels, delete your VMs and start over, don't worry about configuration it didn't do anything good for me, IDE or SATA. Just make sure you start fresh.
Hope it helps, cause for me, none of the other posts helped.