A quick search found the answer - Using P2V converter, during the conversion wizard, there's an option to use Hardware version 7 or 8. I had selected version 8 which would have caused me problems, so I've cancelled the P2V, and then re-ran the wizard to use Version 7 only.
I also believe that there could be an issue when you upgrade VMWare tools too but as i was quickly scanning it, I can't remember. I will manually upgrade VMware tools later if it's necessary.