You should be able to run higher version guests than what you are using.
Note that folks have run higher versions than El Capitan natively by having an updated WiFi/BTLE card and modifying the installer. Check here: macOS Sierra Patch Tool You might also have to upgrade the graphics card to get full Metal support.
Mac Pro 1,1 and 2,1 can also boot all the way to El Capitan by using a custom boot.efi, but are limited from going higher due to Xeon instruction set limitations on those machines. They also do not support higher versions as VMware guest, since VMware does not emulate processors.