Does the VM have multiple virtual NICs?
That 169.254 address is self-assigned when the guest OS is unable to obtain an address from a DHCP server.
Do you have other VMs on the same network running on the same host? Can they talk to each other?
What OS are you using for this VM?
A single nic can be assigned several ip addresses assigned. Vpn software will often add some extra addresses.
What does ipconfig / ifconfig show inside the VM?
Your VM's IP address is an APIPA (169.254.x.y) and generates by the VM guest OS itself because it cannot obtain any IP address from a DHCP server or you set an invalid manual IP address or even have a conflict with another NIC.
Set a valid and free IP address and check it againPlease mark my comment as the Correct Answer if this solution resolved your problem