Got it to work. Thank you all!
In case someone else has similar problems here's what I did to get Filemaker to run on an M1 Mac using Parallels and ARM.
- Went to Settings / Apps and Features and confirmed I didn't already have a C++ library installed (if I did I would have uninstalled).
- Installed this one that @AndyHibbs suggested: https://aka.ms/arm64previewredist
This go me to the second screen, which had been blank before, but now I got an error about permissions - shut down windows
- Parallels control center= Configured sharing from "none" to "Home folder only" and ran installer again
Still had an error about a file not found after I ran this - Manually found where the installer was extracted to (next to the file that I've been opening) and went in and found Setup.exe and ran it
Thank you @AndyHibbs and @MonkeybreadSoftware