The installation of the Operating System image will be denied and "SECUREBOOT: Image DENIED." will be reported in vmware.log.
Below goes the list of the impacted Linux Operating Systems.
This is caused due to the Secure Boot deny list (dbx) is updated to prevent vulnerable bootloaders from being used. For more information, refer to VMware response to GRUB2 security vulnerability CVE-2020-10713 (80181)
Create the Virtual Machine with Secureboot disabled instead.