I am a MacOS user (VMware Fusion) and bm's suggestion of adding the following line to each virtual machine's .vmx file solved the mouse wheel scroll problem:
mks.mouse.pixelScrollSensitivity=1
Mouse wheel scrolling now works correctly in my Windows and Linux VM guests, which is to say that the clicks are no longer being divided by 8.
Note: Quite a few people here and in other venues have suggested to "always" use "game mode." That DOES NOT solve the problem at all. The only thing it does is prevent the mouse being able to exit the VM window, meaning I have to press a shortcut key to release the mouse and keyboard from the VM. Again, "game mode" DOES NOT solve the mouse scroll divide by 8 problem. Adding the above line to the .vmx file solved it for me.
Thank you to bm for this information.
