This error means the graphics device in your client device does not support hardware decoding.
Hardware decoding means that the graphics device in your client computer has a chip in it dedicated to playing streaming video - like Parsec's app, or Netflix.
If you do not have this chip on your graphics device, Parsec will need to use Software Mode, which relies on your CPU to play the Parsec video stream.
HOW CAN I CHECK IF MY DEVICE HAS A HARDWARE DECODER?
Check your computer's CPU and GPU, if supported, it will be listed under the RECOMMENDED section of this article.
MY COMPUTER HARDWARE ISN'T SUPPORTED, WHAT CAN I DO?
Your stream will still work, but it may be slow at 1920x1080P. We recommend changing your host (the computer you're connecting to) resolution to 1280x720 - this will lessen the chance of lag.
If you're using a laptop, keep the power adapter plugged in as software decoding is very performance intensive.
MY AMD GRAPHICS CARD IS LISTED UNDER THE RECOMMENDED HARDWARE, BUT IS STILL USING SOFTWARE, WHAT DO I DO?
You need to change to AMD Crimson drivers, there should be a beta version available for older AMD graphics cards. You can find it on the AMD.com support page.
You should also change your host desktop resolution (the computer you're connecting to) 1280x720 as older AMD hardware decoders are not able to process 1920x1080P video fast enough.
MY LAPTOP HAS BOTH INTEL AND NVIDIA GRAPHICS