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I had exactly the same problem with Windows 7.
I got it working by doing the following:
1. Shutdown the VM completely
2. From VMware Fusion menu select Virtual Machine -> Settings...
3. From Settings select Processors & Memory
4. From Processor & Memory click on arrow near "Advanced options" text
5. From the Advanced options uncheck option for "Enable hypervisor applications in this virtual machine"
6. Close VM Settings and try to boot the Windows 7 again
I had the same issue, but with Windows 10.
Following these steps fixed the issue.
Did not work for me - Citrix 1812 in Win7 still causes "Fusion 11 encountered an error problem' Fusion Version 11.0.2 (10952296) with Enable Hypervisor enabled...,