This solves this problem for me as well.

VM version 12

Mac OS

This problem happened when I upgraded my windows copy and the VMware app, so not sure what caused it but one of those updates bugged things up as it was fine before that.

For clarification:

Shut down your virtual machine.

In your virtual machines window right click the virtual machine and choose "Show in finder"

Right click on the virtual machine in your finder window "Show Package Contents"

Find the .vmx file in the contents of the .vmwarevm file and open the .vmx it in a plain text editor.

Add mks.mouse.pixelScrollSensitivity=1 to the file and save.

Or edit the value if it was already there (search first).