As a followup, after falling back to version 14.0.0, I tried the Windows 7 Pro Guest that I had installed the updated VMware Tools 10.2. The cursor still jumps and the text editor still had the same issue with the jumping cursor after pushing undo multiple times in a row. Only after I downgraded the tools to 10.1.15 did this virtual machine return to normal.
My Windows XP virtual will now start normally under 14.0.0 (it never had the updated tools as it did not start the first time under 14.1.1, and stayed in a light blue screen the second time I tried to start it??).
I don't believe 14.1.1 is ready for prime time.