same funky login issue here.
If I login with domain\username I see no localhost and cannot add one like described.
If I login with JUST username (not domain\username) I see the shared VMs (localhost).
When I click shared VM's (localhost) it asks for password again....
now it says bad user name and password with JUST username but if I now type domain\username it works....
Wanted to demo this to a customer but I don't want to login once then login again.... and then have to log into the guest OS. Doesn't look too appealing.
In the VMware workstation I have permissions for that username on both "shared VMs" and on the guest OS for full administrator roles.