Is the parallel argument supported in the pulumi python automation api? If so how do I use it? Do I have to account for the name collisions when creating multiple VMs?

I don't think the parallel option has any effect for python. You only need to account for name collisions when making multiple resources if you set their name property directly. If you leave their name unset pulumi will invoke its automaming logic and fill in random chars at the end of names (https://www.pulumi.com/docs/intro/concepts/resources/names/#autonaming)

That makes sense. Thank you!