Error when starting a newly created VM in Player 15.5 on Windows 10 Pro x64

I installed VM Player 15.5 on Windows 10 Pro x64 and created a new Windows XP VM. When I try to open the new VM, I get the following error:

Error while powering on: Failed to power on 'C:\Users\<current user\Documents\Virtual Machines\Windows XP Professional\Windows XP Professional.vmx'.

I also get the same error if I create a new VM without any guest OS i.e. choosing to install it later. So I know it is not specific to the VM OS image file I have.

My first thought it might be a conflict with Windows 10's Hyper-V, so I removed this as a feature, but I always get the exact same error.