Virtual Machines that have side channel mitigations enabled while running on Fusion on Mac OS 11.0 or later or on Workstation on Windows hosts with virtualization based security enabled may run slowly.
The root cause of the performance degradation is most likely due to mitigations for side channel attacks such as Spectre and Meltdown. Side channel attacks allow unauthorized read access by malicious processes or virtual machines to the contents of protected kernel or host memory. CPU vendors have introduced a number of features to protect data against this class of attacks such as indirect branch prediction barriers, single thread indirect branch predictor mode, indirect branch restricted speculation mode and L1 data cache flushing. While these features are effective at preventing side channel attacks they can cause noticeable performance degradation in some cases.
To disable side-channel mitigations use the Workstation Pro / Fusion UI.
Note: Above settings are not applicable in VMware Workstation Player