This morning I installed KB4571694 on my host machine running Windows Server 2016 on an AMD 3950X CPU and x570 chipset. I also installed it on a virtual machine that I use heavily. After rebooting the host, all of virtual machines started crashing. They would try to reboot and fail to start or crash shortly after. I rolled back the update on the host and everything stablized including the virtual machines that were running the update.
Just sharing in case it isn't just me.
I'm running VMWare 15.5.1 and thinking of updating to the current version before trying again. Also, I am not using "server hardware" so I'm accepting the risks for that. I have my reasons and its worked out very well for me so far.
Using WS15.5.6, i can not reproduce your issue on Win Server 2016 with KB4571694 installed. Would you please try to paste the "vmware.log" and the "dmp file" which locate in the VM folder? Thanks