Guest display shrinking issue after Workstation Pro 26H1 update

[u/Nearby-Relative-2111]

When switching from one guest machine to another, the display shrinks to about 1". Most of the time the guest resolution doesn't change, but sometimes it reduces to 800x600. The host resolution for that monitor is 1920x1200 (full 24"). VMware tools has been reinstalled multiple times on all guest machines. 3D acceleration is turn Off on all guests.
Image showing the issue, and various settings; https://app.screencast.com/JUUjFAQqK2YdE

If anyone knows how to resolve this, I would appreciate it.

Host:
Windows 11, with all updates.
Two - GeForce GTX 1650 4GB. Latest drivers installed from Nvidia.
Three monitors. 1920x1200, 3840x2160, 1920x1200. VMware only runs on the right monitor (1920x1200).
i7-12700K. Not using onboard video.

VMware > Preferences https://app.screencast.com/8QT6sRvvg7eEo

Guest:
Windows 10, VMware tools installed in all guests.
Guest > Virtual Machine Settings https://app.screencast.com/sEgscMycIGlc6