Did you perchance set the following:
VMware Fusion menu -> Preferences -> General tab -> Gaming
The default of that setting is "Auto-detect mouse for games"
If you change that one to "Always optimize mouse for games" then it would behave like you said.
In that case, change it back to the default.
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It was already on "always optimize mouse for games": as I saw that response to other questions going back years.
However, putting it on "auto-detect for games" did work. I do not understand technology!