VMware with Windows 10 not recognising keyboard input running on Ubuntu 16.04 host

Wondering your windows 10 machine was a Lenovo? If that is the case this answer might work for you. There is an issue with lenovo drivers on some VMs. I had an issue with this and the work around wasn't pretty.

Start the machine, and use the screen keyboard to log in. Allow the device to accept Remote access.

RDP into the machine, keyboard will then work. In my application this is what it was intended for anyway, so further work wasn't needed.

From there you would be able to update drivers, and install the Guest tools. I normally only see guest tools greyed out if you don't have a cd drive option on the VM.