Typing input lag when Manjaro is hosted as Guest OS

I’m running a Manjaro guest on a Windows host using VMware Workstation 16 Pro. I’ve noticed a noticeable input lag when typing into editors such as Visual Studio Code, especially when using the arrow keys on the keyboard. The lag ranges from 100ms to 1 second and makes typing difficult.

Both Manjaro with KDE and Manjaro with Gnome experience this issue. When setting up Ubuntu or Fedora as guest OS, there is near to no input lag.

Did any of you ever have a similar issue?

Dell XPS 17
CPU: 11th Gen Intel(R) Core™ i9-11900H @ 2.50GHz 2.50 GHz
GPU: NVIDIA GeForce RTX 3060
VMware Workstation Pro: 16.2.3 build-19376536

OS: Manjaro Linux x86_64
Host: VMware Virtual Platform None
Kernel: 5.15.38-1-MANJARO
Uptime: 1 hour, 16 mins
Packages: 1254 (pacman)
Shell: bash 5.1.16
Resolution: 1920x1080
DE: Plasma 5.24.5
WM: KWin
Theme: [Plasma], Breeze [GTK2/3]
Icons: [Plasma], breeze [GTK2/3]
Terminal: konsole
CPU: 11th Gen Intel i9-11900H (8) @ 2.495GHz
GPU: 00:0f.0 VMware SVGA II Adapter
Memory: 3214MiB / 24262MiB