I'm having the exact same issue with VMWare Workstation v16.2.0.18760230. Luckily I had VMware Workstation v16.0.0.16894299, so I uninstalled 16.2 and installed 16.0.0.16894299 and now it's working fine.

Seems to me that 16.2.0.18760230 is "broken" in that part and someone needs to fix it...