Hello. I’m using VM Workstation Pro. I “see” the desktop on the desktop, inside of the VM Workstation Pro software, if that makes any sense.
Edit, I just verified it is totally related to how much screen real estate the terminal session takes up on the screen. What I mean is … the default “small” terminal is great. But I made the terminal window larger, in steps, until it took up the full screen, and each time I made it bigger it introduced more “lag”. I believe it is graphics lag, and not keyboard lag, … it just “feels like” keyboard lag.