I just updated VMWare Fusion to version 12.1.2 (Professional Version), and immediately the "Use All Displays in Full Screen" fails to work (stays on original screen). My system is Big Sur version 11.3.1. Here's some other system info:
Model Name: MacBook Pro
Model Identifier: MacBookPro11,5
Processor Name: Quad-Core Intel Core i7
Processor Speed: 2.5 GHz
Number of Processors: 1
Total Number of Cores: 4
L2 Cache (per Core): 256 KB
L3 Cache: 6 MB
Hyper-Threading Technology: Enabled
Memory: 16 GB
System Firmware Version: 427.0.0.0.0
SMC Version (system): 2.30f2