Resize Virtual Machine to Fit does not work in a Windows Server 2016 guest. It works fine in other guests.
VMWare Fusion 8.5.6 on macOS 10.12.4. VMWare Tools for Windows 10.1.6 installed in guest.
When I have time I will try on my own mac!Don't have an answer now, but as soon as I am at the point I can test I will let you know!