Yesterday I deloyed Workstation 16 on an DELL Lattitude with an IRIS onboard graphics card. Running a kali vm I found my mouse in the console wasn't really usable.
After a range of troubleshooting I found the issue also appeared when using the workstation GUI and that there seems to be a layer selection issue with the GPU (assumption). It's related to mouse focus between "cursor" and "select link"
I tried every combo of config and nothing was changing this.
I tried 3 versionf of the IRIS driver with no success.
I then removed the intel driver and replaced it with the MS Basic Display driver. I can now use workstation and Linux guests again.
Basically there is an issue with graphics drivers and VMW 16 /Windows 20H2. It seems MS, VMWARE, INTEL, DELL, NVIDIA etc. all can't work out who's fault it is........................................
they should just work together to fix the issue
I have installed the latest Intel IRIS graphics drivers and the issue appears to be fixed. I downloaded the drivers directly from Intel, rather than through Dell: https://downloadcenter.intel.com/download/30381/Intel-Graphics-Windows-10-DCH-Drivers
Version: 22.214.171.12466 released on 16th April 2021.