VMware Workstation 25H2
The issue occurs when the Workstation attempts to utilize the Vulkan rendering engine for displaying the VM console. This can be due to incompatibility or an unexpected state within the interaction between VMware's graphics engine and the underlying Windows host graphics drivers/configuration.
Following workaround can be followed which disables use of Vulkan for the specific VM.
C:\Users\<username>\Documents\Virtual Machines\<VM_Name>mks.enableVulkanPresentation=FALSE