Thank you all for sending me dump files. I have filed a high-priority bug internally to track this issue. As far as I understand, this bug happens when (1) you are using a server with a custom port and (2) you have file redirection enabled (see attached screenshot file_redirection_checkbox.png to see where it is).
I apologize for the inconvenience that this has caused. We are in the early stages of planning a 3.5.1 release with a fix for this issue. In the meantime, I think that you can work around this issue by disabling file redirection (the feature that registers Hosted Apps as file extension handlers) by doing one of the following: (1) unchecking the aforementioned checkbox or (2) setting either "HKCU\Software\VMware, Inc.\VMware VDM\Client\AllowFileRedirection" or "HKLM\Software\<Wow6432Node>\VMware, Inc.\VMware VDM\Client\AllowFileRedirection" REG_SZ to "false" to kill switch this functionality off. I'm not 100% sure if #1 will work around the issue but I am fairly confident that #2 will work around the issue.
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