I doubt if it has anything to do with the Fusion mouse settings.
There are other cases here in the VMware community that doesn't involve Fusion software where people experience their "mouse madness" in Microsoft Remote Desktop and/or vSphere Client to manage VMware ESXi and VMs. Setting their Windows scaling back to 100% resolves a lot of these strange mouse movement/clicking problems for them.
Unusual mouse behaviour is just one symptom of Windows display scaling problems; such as mouse pointer that doesn't want to go where you want it to go or unable to click on an actual icon but having to click somewhere outside it. Imagine the havoc it would cause for someone with trading software as usually the "Buy" and "Sell" buttons are right next to each other. Other visible symptoms are when some icons, application text fonts, dialog windows are either too big or too small and/or out of proportion with the rest.
Since your macOS display have a maximum 1920x1200 (just like a 2010 17" MacBook Pro that I have), there is no difference in Default and the maximum resolution available for Scaled.
There are multiple layers of display settings in a macOS Fusion with Windows 10 VM scenario along with the settings in italics for you to try
macOS layer - Displays in System Preferences 1920x1200
Fusion Preferences - Display
Single Window - Resize the virtual machine and the window
Full Screen - Resize the virtual machine to fit the screen
Fusion VM Displays Settings
Automatically adjust user interface size in the virtual machine - not checked
Virtual Machine Resolution - Use Fusion Display Preferences for both options
Windows VM OS
Change the size of text, apps, and other items - 100%
Advanced Display Settings - perhaps at 1680x1050
It is a different story with the higher resolution MacBook Pro that have 2560x1600 and 2880x1800. If you set to 100% for the Windows VM and macOS scaling set at 1:1, you will likely need a magnifying glass to look at the Windows VM :smileyhappy: