If you are running a console (or “tty”) session in your Ubuntu Server (that is without a GUI/GNOME environment) then there is no copy/paste/drag/drop available. These on,y work with a graphical desktop session which is not the default for Ubuntu server.
If you are running a graphical session - you need to make sure that both open-vm-tools and open-vm-tools and open-vm-tools-desktop packages are installed from the distros repos. But note that drag/drop only works for X11 sessions. The default for Ubuntu is Wayland. (Copy/paste works for both Wayland and X11 sessions).
The Fusion menu item for VMware Tools installation is always grayed out for Linux VMs. That’s because a) VMware recommends use of open-vM-tools provided through the distro’s repos, and b) ther are no VMware Tools packages that are able to be installed by Fusion on Linux ARM )again, use open-vm-tools from the vendor’s repos).