This resolved. Below are the instructions I received from VmWare and worked for me.
I see that after the latest Fusion update you are seeing issues with your network adapter.
Firstly I would suggest you to try the below suggestions:
1. Go to the Applications folder on the Mac. Now drag and drop the Fusion icon into the trash.
2. On the Mac go to Applications>Utilities. Now select and launch Terminal.
3. Now in the Terminal window type the below command as it is:
defaults write com.apple.finder AppleShowAllFiles TRUE (once this is typed press the Return key on the keyboard)
killall Finder (once this is typed press the Return key on the keyboard)
4. Now go to Finder from the dock and go to Mac HD/Users/<username>/Library/Preferences. Inside the Preferences folder look for the file named com.vmware.fusion.plist. Once this file is found drag and drop it to the trash. Empty the trash. Also look for the folder named "VMware Fusion" and then trash it. Empty the trash.
5. Reboot the Mac.
Now download Fusion 4.1.3. When you select to download do not click on "Download Manager", instead select "Manually download":
Once downloaded, install Fusion 4.1.3 on the Mac. To install run the .dmg and then drag and drop the VMware Fusion icon onto the Applications folder.
Once Fusion 4.1.3 is installed power on your Windows virtual machine and then install VMware Tools in it. Once Tools is installed reboot the guest.
