You are invoking an infinite loop, because you are calling WP_Query inside WP_Query, which is where the hook resides, so you are hooking it into parse_query over and over again. To avoid it, put the following at the beginning of your callback function:
// avoid infinite loop
remove_action( 'parse_query', __FUNCTION__ );
Additional note, it might just be a lesser technicality, but in my mind the right hook to use would be pre_get_posts.
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