Looking through my ESXi event log I saw this message:
"Warning message on server: Insufficient video RAM. The maximum resolution of the virtual machine will be limited to 1672x1254. To use the configured maximum resolution of 2560x1600, increase the amount of video RAM allocated to this virtual machine by setting svgavramSize="16384000" in the virtual machine's configuration file."
This is already detailed in a VMware kb article: kb.vmware.com
The quick and easy fix is:
Shut down your VM
Edit your VM settings
Change the Video card total RAM to 16mb
Boot up your VM and no error message