I think removing the VM Tools to fix the problem are a secondary result to the initial problem. Typically when you remove the VM Tools, certain devices on the VM stop functioning at full capacity, including the VMNIC, which could cause the group policies not to apply correctly or fully, therefore, fixing the problem. I would still go back to GPO, and also PM is your friend as @AlnoorCassim suggested, probably only if you don't find anything that stands out in GPO. Try looking in computer and user config under administrative templates> file explorer and see if anything might be set at a restrictive setting there.