I found a workaround.

Context:

(I also have this problem, running Worstation 17 Pro on ArchLinux, so this is not happening only when host is Windows)

When installing an Ubuntu system from creating a VM (not duplicating one), Workstation auto-detects it and automatically sets up the Guest OS to "Linux" and Version to "Ubuntu 64-bits".

Action:

I changed that detected Version, and manually set it "Other Linux 6.x kernel 64-bit", then continue the installation.

Result:

Nothing no longer freeze.

PS: how to send that information to VMWare devs?