I upgraded to VMware Fusion 12.0 from version 11 whenever it was released and initially ran it under MacOS 10.15 on my iMac (2020).
When I opened my virtual machine copy of MacOS 10.11 I was invited to upgrade so it could use the latest Fusion 12 features. Upon doing this the cursor of the virtual machine was stuck at the top left of the screen. Nothing would make the cursor move. I then replaced the MacOS 10.11 VM with a backup copy and opted not to upgrade it. In this version the cursor could be moved perfectly.
I upgraded to MacOS 11.0.1 and VMware Fusion 12.1. Again I opted to upgrade the Mac OS 10.11 virtual machine and this time no cursor appeared at all. The non-upgraded version worked perfectly.
It appears that there is something in the "upgrading" process of the VM copy of MacOS 10.11 that renders the cursor of the virtual machine useless. Has anyone else come across this issue and, more importantly, found a reliable fix for it? At present I just use the non-upgraded version which seems to work okay as a workaround.
After upgrading I checked the virtual machine OS type and it was still set to OS 10.11. I have also installed the latest VMware Tools from Fusion 12.1 before upgrading but I'm still left with a non-responsive cursor. Ironically all my Windows VMs have updated painlessly.