PCSKD110 Error after Mac OS Upgrade to Sierra with Parallels 12

Hi All,
I am using a MacBook PRO with Parallels in order to run Windows.  Until yesterday, I was on El Capitan and Parallels 10 with both a Windows 7 and a Windows 10 Virtual Machine and using IBM iSeries Access for Windows 7.1. Everything worked fine.
Yesterday, I upgraded the Mac to OS Sierra and upgraded Parallels to Version 12 which supports Sierra.  It also installed an add-on Parallels Tool Box.  Everything was working fine until I attempted to use Client Access.  When I clicked on one of my saved sessions, I received a PC5250 error message:     "PCSKD110 - The system keyboard (type 34668816, sub-type 2) is not supported"
I clicked OK and continued to enter UserID and Password.  The iSeries logon panel displayed, but no keyboard keys worked.  I tried this on both Windows 7 and Windows 10 and both failed.  If I try to configure a new session, I get error "PCSWS037 - Initialization of the keyboard table failed.  The session may not be fully operational".
I tried Edit -> Preferences -> Keyboard to access the Keyboard Mapping.  Keyboard Layout=System Language, Current Keyboard=User-Defined and I have a KMP file associated with Keyboard-File Name.  When I click OK, I also get the PCSKD110 error.  I have tried to change Keyboard Layout=United States and also change Current Keyboard=IBM Default, but I still get the error.
I called Parallels Tech Support on Sunday.  They reinstalled Parallels Tools and did some other things, but still had the problem.  They indicated that this must be an iSeries Access problem and that I should uninstall and reinstall that app.

I did that, but I still had the error.  I then installed iSeries Access 5.9 and still had the problem.  I also changed the Windows Language to English US rather the US International (Apple) Parallels.  Still had the problem.
There are some references to this issue in online search, but not for Sierra.  I tried some of the solutions, but they did not work.

This morning I called Apple Support.  They indicated that if Mac is OK, then the problem must be with Parallels interface to Windows.  So, I called Parallels again.  This time Tech Support did a lot of checking and changing various values, etc., but still have the problem.  It has been escalated to next tier support, but I don't know when they will get back to me.
Have any of you run into this issue and did you find a solution?  As I mentioned, this error message is referenced in various online searches on prior Windows versions and Parallels.
For now, I am able to use Mochasoft to access iSeries so at least I can get some work done today.
Any thoughts would be greatly appreciated.
Thanks.
Les Mittman




 Thanks. Les Mittman Cell: 847-858-5235