Since I have updated USB devices are no longer recognized by my VM (or by fusion). Does anyone know the fix? I've given it all the permissions it asks for in the Security and Privacy Settings panel.
I had the same issue, and found a solution in my case. I went System Preferences / Security and Privacy / Privacy, and then added VMWare Fusion to Full Disk Access. After doing that and restarting VMWare Fusion, I was able to pass USB devices through to the guest OS (Windows 10 in this instance). Hope that helps.