There are three instances when this error may occur
1. When you click a link or try connecting from the web browser without being logged into Parsec. Please log in to the Parsec Application you downloaded, and you'll be able to make a connection.
2. When you try to connect to a host via command line and have not previously logged into the Parsec daemon application.
3. You have 2 Factor authentication enabled and are trying to use Parsecd via terminal -you need to disable 2 factor authentication in order to login to Parsecd via terminal.