Hi.
Thought I'd leave a note as I managed to get rid of my issue with mouse locked in guest.
I am using VMware Workstation 16 and Gentoo w kernel Linux 5.10.205
There is various stuff involved in this setup. And I won't say what is best or right or wrong, just how I got it to work. First of all Gentoo have a nice VMware wiki which give a lot of input on how to set up your host and guest in the Linux world.
i, myself was missing the PS2 VMware mouse in kernel, so I imagine VMware, rightly so, just emulated a PS2 mouse without knowing it belonged to VMware. There is an checkmark for VMware in the kernel. This option isn't mentioned in wiki as far I could see. .. Look for CONFIG_MOUSE_PS2_VMMOUSE. It did it for me. I also got an issue with keyboard lag in guest if 3D is marked on in host settings. I live with the lag but just thought I would say. I also had to use a cutting edge xf86-input-vmmouse (fixed 13.2.0 having issues).