When using a Linux guest OS on Parallels, I was occasionally getting the following error, along with a password input:

The password you use to log into your account no longer matches your login keyring

However, when entering the login password into the prompt, it fails. After going down this rabbit hole for a day or two, I cam across an old forum post with an answer that worked for me.

Instead of typing your login password, just type “parallels” instead.

It seems that by default, Parallels sets its own keyring password.

Note: The error seems to primarily pop up when attempting to open Chromium based programs.