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You are using the VMXNET3 interface, and not the E1000, which should only be used for installation, and then removed and replaced with VMXNET3.
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You are using the VMXNET3 interface, and not the E1000, which should only be used for installation, and then removed and replaced with VMXNET3.

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I switched to the VMXNET3 interface and removed the E1000. &nbsp;Rebooted the guest and the mouse cursor is still laggy.
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I switched to the VMXNET3 interface and removed the E1000.  Rebooted the guest and the mouse cursor is still laggy.

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Not seen, the issue, and we deploy R2, many times a day during the week.<br />
<br />
VMware Tools is installed and running?<br />
<br />
Servers are not updating or being patched?<br />
<br />
No Anti-Virus?
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Not seen, the issue, and we deploy R2, many times a day during the week.

VMware Tools is installed and running?

Servers are not updating or being patched?

No Anti-Virus?

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My comment explains what the issue was and how it was fixed.
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My comment explains what the issue was and how it was fixed.

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We are currently running ESXi 5.5 build 2143827<br />
<br />
I have created a few Windows Server 2012 R2 guests that have all windows updates applied and the latest VM Tools installed.<br />
<br />
Mouse performance is sluggish within RDP sessions, but instantaneous from the console session within the Vsphere client.<br />
RDP sessions to any other guest OS works perfectly. &nbsp;We are only seeing the issue from 2012 R2.<br />
<br />
Am I missing something with server 2012 R2 or is this a known issue?
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We are currently running ESXi 5.5 build 2143827

I have created a few Windows Server 2012 R2 guests that have all windows updates applied and the latest VM Tools installed.

Mouse performance is sluggish within RDP sessions, but instantaneous from the console session within the Vsphere client.
RDP sessions to any other guest OS works perfectly.  We are only seeing the issue from 2012 R2.

Am I missing something with server 2012 R2 or is this a known issue?

RDP for Windows server 2012 R2 under VMWARE is sluggish

VMware, a software company founded in 1998,  was one of the first commercially successful companies to offer x86 virtualization. The storage company EMC purchased VMware in 1994. Dell Technologies acquired EMC in 2016. VMware’s parent company is now Dell Technologies.

VMware has many software products that run on desktops, Microsoft Windows, Linux, and macOS, which allows the virtualizing of the x86 architecture.  Its enterprise software hypervisor for servers, VMware vSphere Hypervisor (ESXi), is a bare-metal hypervisor that runs directly on the server hardware and does not require an additional underlying operating system.

VMware

Windows Server 2012 is the server version of Windows 8 and the successor to Windows Server 2008 R2. Windows Server 2012 is the first version of Windows Server to have no support for Itanium-based computers since Windows NT 4.0. Windows Server 2012, now in its second release (Windows Server 2012 Release 2) includes Foundation, Essentials, Standard and Datacenter, and does not support IA-32 or IA-64 processors.