You may have noticed that running the VMWare vSphere client on a display with higher DPI settings causes problems with the mouse cursor alignment when working inside a VM. This is because of a mismatch between the DPI settings of the VM and the DPI settings of your computer.

To resolve, right-click the shortcut to the client, go to the Compatibility tab, and enable Disable display scaling on high DPI settings.

The downside of this method is that there will be misalignment of some parts in the client, but it is still workable and moreover, it solves the mouse issue in a VM.