This issue is SOLVED. Replacing the two files with the ones provided by parallels solved this issue.
I received and email this morning with two attached files stating that the Parallels development/product maintenance team was able to solve the issue. Below is the email and two attached files in a zip file:
Thank you for contacting us.
Below is the latest response from Parallels:
Thank you for your patience.
To fix the issue, please replace AbstractMailNameAutoResponders.php and AbstractMailNameAutoResponder.php files in /usr/local/psa/admin/plib/mail/ folder by the attached versions (before that create backup copies just in case).”
Both files are attached.
If you have any further questions please do not hesitate to contact us.