I have a fresh install of macOS 10.12.6 in VMWare Fusion 10.0.1, the VM has the latest VMWare Tools installed in the guest OS. I've set the resolution of the VM to 1920x1080 by dragging the window size to that particular resolution.
When I log in, the guest OS kicks back down to a 960x540 HiDPI resolution. Adjusting the resolution in System Preferences works until the next log out & log in cycle, where it resets the resolution of the VM back to the 960x540 HiDPI resolution.
This issue also occurs when the Default for display option is selected in the Display preference pane.
Monitor is a 27" 2560x1440 display.
VM Settings has Use full resolution for Retina Display disabled.
Attached is a video of the issue.
*EDIT* - I should note, this issue does not occur in my 10.13 VM.
Anyone else experienced this? What fix (if any) has been applied to resolve this annoying behaviour?