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To fix this issue, simple follow the steps below.
Open the VMware Preference File:
Run the following command to open the vmware preference file.
Add 3D support in the Preference File:
Now in the end of this file, add the following line.
mks.gl.allowBlacklistedDrivers = "TRUE"
Save the file. Now close the VMware program and re-open it. It shouldn't complain "No 3D support is available from the host" anymore.
Tested on: Ubuntu 16.04 LTS
Software Package: VMware Workstation Pro 12.5.2 build-4638234