To enable this option for a specific virtual machine:

1. Log into a vCenter Server system using the vSphere Client and power off the virtual machine.
2. Select the virtual machine and click the Summary tab.
3. Click Edit Settings.
4. Navigate to Options > Advanced > General and click Configuration Parameters.
5. Click Add Row.
6. Type these values in the Name and Value columns:

                               Name                                                Value

   • isolation.tools.copy.disable    false
   • isolation.tools.paste.disable   false

   Note: These options override any settings made in the VMware Tools control panel of the guest operating system.
7. Click OK to close the Configuration Parameters dialog, and click OK again to close the Virtual Machine Properties dialog.

8. Power on the virtual machine.

    

   To enable this option for all the virtual machines in the ESX/ESXi host:

   1. Log in to the ESX/ESXi host as a root user, make a backup of /etc/vmware/config and then open/etc/vmware/config file using a text editor.
   2. Add these entries to the file:

      vmx.fullpath = "/bin/vmx"
isolation.tools.copy.disable="FALSE"
isolation.tools.paste.disable="FALSE"

   3. Save and close the file. 

      The Copy and Paste options are only enabled when the virtual machines restart or resume the next time or shutdown and power-on the VM for changes to take effect

   Note: These options do not persist after an upgrade. If you upgrade to a newer version after enabling these options, the changes are lost and you may have to re-enable them.

Update for vSphere 6.5 - Host method does NOT work with VMRC. The VM option does work.