Since I never remember where this is or is it on the target or origin computer…
When copying files from a virtual machine using copy/paste (desktop copying), vmware creates a temporary copy of the file and LEAVES it in place. Over time you might have 100G in this obscure location so cleaning it manually (disk cleanup doesn’t remove these) becomes a necessity.
On the destination computer, the directory exists in %TEMP% where you drill down into your user part and then VMwareDnD, i.e. like
C:\temp\vmware-eskimo\VMwareDnD