Does your physical machine have a floppy drive? If not just click no.
I got the same popup on my VMware Workstation as I don’t have a floppy drive in my laptop.
What version of Vmware are you talking about? I assume its workstation.
Have you created a new Virtual machine and set it for Linux?
Goto, file, new VM and follow wizard to configure.
then ensure you are booting from CD in the VM settings.
also sounds like your boot order is not set correct.
boot vm and go into the VM bios and set boot order to be cdrom first.
Floppy problem is as first advice, ignore now or choose do not look in future for floppy.
Should then boot from CD/DVD
Hope this helps