Was facing the same exact issue.
This is how I resolved:
1. Login to the client machine using an account with Administrative privileges.
2. Browse following location:
C:\Program Files (x86)\VMware\Enhanced Authentication Plug-in 6.5
3. Locate following registry file: WindowsAuthKey_x64 or WindowsAuthKey_x86 depending on OS being 64-bit or 32-bit.
4. Double Click on the above file and Merge it into Registry.
5. If it fails to Merge, then try logging in with Local Administrator account and try again.
6. Launch a web-browser and test if Windows Session Authentication box is available.
7. If not, then uninstall and reinstall Enhanced Authentication Plug-in and try again.