Parallels desktop VM .hdd file is way larger than the guest disk size

So your machine shows no snapshots, but you have multiple .hds files inside your .hdd files. According to Parallels support you do still have snapshots, even though the snapshot manager shows no snapshots. The command to merge the snapshots is as follows:
prl_disk_tool merge –hdd /{path and filename of the .hdd file you want to merge}

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