If you want to move a form that is not at the top level to the center of its container panel, you can set the Locationforms manually:
var f = new Form2();
f.TopLevel = false;
f.Parent = this.panel1;
f.StartPosition = FormStartPosition.Manual;
f.Location = new Point((this.panel1.Width - f.Width) / 2,
(this.panel1.Height - f.Height) / 2);
f.Show();
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