“Please explain what the Garmin Parking Mode cable (part number 010-12530-03) does and what it connects the dash cam to? Is the parking mode cable needed if the USB end of the power cord is plugged into a power bank?”
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The parking mode cable provides both a switched source of power (when the car is running) and a constant source of power (when the car is off) so that the camera can be set to run for a predetermined time when the car is turned off and parked. I would assume if you were using a power bank to provide a constant source of power and using the car's electrical system for the switched source you would need this cable.
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