UPDATE 2: A non-public (not on their main website) release of the arm64 Desktop version is now available on the dail-live folder:
https://cdimage.ubuntu.com/jammy/daily-live/current/jammy-desktop-arm64.iso

Your mileage may vary, but it could perhaps work outright as this other user has indicated.

Some were confused, here's a complete screencast of the process outlined below:
https://www.youtube.com/watch?v=56n2q6-MXX8

1. Download the ARM64 Server edition from: https://ubuntu.com/download/server/arm


2. Install with the ISO when creating a new guest/vm in Parallels 17


3. Update System sudo apt update && sudo apt upgrade then sudo reboot


4. Login and install: sudo apt install ubuntu-desktop


5. Reboot (sudo reboot)


6. Parallels Tools Installation: two options

• Use Menubar:

  
  
  
  
  1. Menubar → Actions → Install Parallels Tools
  
  
  2. Install via shell:
     

     cd /media/USERNAME/Parallels Tools
     
     sudo ./install
     
     sudo reboot
     
     

     
     
  
  
  
  



• Use ISO: mount Parallels ARM64 tools ISO and install:

  
  
  
  
  • Note: initially I installed Parallels Tools before installing the graphical user interface, but if you install it after the installation of ubuntu-desktop or even kde-standard/full/whatever then copy paste, etc. functionality will also be installed.
  
  
  
  
  
  
  1. CD-ROM: "Connect image..."
  
  
  2. Navigate to /Applications/ and change to List view
  
  
  3. Expand Parallels Desktop.app/Contents/Resources/Tools/
  
  
  4. Select and Open prl-tools-lin-arm.iso
  
  
  5. Execute:
     

     sudo mount /dev/cdrom /media/
     
     cd /media/
     
     sudo ./install
     
     # allow it to install appropriate tools
     
     sudo reboot
     
     

     
     
  
  
  
  

7. Success:
   

DOCKER:

There was a question below about whether or not Docker can work with Ubuntu 22.04 on Apple Silicon. The answer is YES. The catch or hang up that people are hitting is when they try to use "Docker Desktop" on Ubuntu (instead of directly on macOS). This tries to run a nested virtualization scenario and Apple does not have this instruction set available on the M1 series of Apple Silicon devices. The key, however, is to just use Docker itself with something like a tutorial from here:
https://www.digitalocean.com/community/tutorials/how-to-install-and-use-docker-on-ubuntu-22-04

You'll then notice that after you successfully set it up and run docker run hello-world that it does work. Furthermore you can do install distributions like Alpine and run them:

$ docker pull alpine

$ docker run -it alpine

/ # ls

bin    dev    etc    home   lib    media  mnt    opt    proc   root   run    sbin   srv    sys    tmp    usr    var

/ # exit

$ docker image ls

REPOSITORY    TAG       IMAGE ID       CREATED       SIZE

alpine        latest    3fb3c9af89a9   5 weeks ago   5.32MB

hello-world   latest    46331d942d63   7 weeks ago   9.14kB

$ docker system prune -a --volumes

WARNING! This will remove:

  - all stopped containers

  - all networks not used by at least one container

  - all volumes not used by at least one container

  - all images without at least one container associated to them

  - all build cache



Are you sure you want to continue? [y/N] y

Deleted Containers:

e02dce4144eccb4828a3775ec96c97c5741c69120981bf323732796ff2e4855f

72beba41f97505fe14532b0f700e6c1477986c35c656bac7500591194725e1ef



Deleted Images:

untagged: hello-world:latest

untagged: hello-world@sha256:80f31da1ac7b312ba29d65080fddf797dd76acfb870e677f390d5acba9741b17

deleted: sha256:46331d942d6350436f64e614d75725f6de3bb5c63e266e236e04389820a234c4

deleted: sha256:efb53921da3394806160641b72a2cbd34ca1a9a8345ac670a85a04ad3d0e3507

untagged: alpine:latest

untagged: alpine@sha256:4edbd2beb5f78b1014028f4fbb99f3237d9561100b6881aabbf5acce2c4f9454

deleted: sha256:3fb3c9af89a9178a2ab12a1f30d8df607fa46a6f176acf9448328b22d31086a2

deleted: sha256:4f4ce317c6bbf55719e49973d32d33ba456d7cb08693a6d6fb372690eacee23b



Total reclaimed space: 5.331MB