By default the settings.ini file is zero length and probably is not the cause of the issue.
If the Virtual Machine will not resume then you'll need to manually remove the suspended state.
Locate the folder containing the file that comprise the Virtual Machine and then with VMware Workstation closed, or at the least the Tab for the target Virtual Machine in the VMware Workstation GUI closed, delete the following files: .vmss, .nvram and .lck files/folders.
Next edit the .vmx configuration file so the checkpoint.vmState option shows: checkpoint.vmState = ""
Note: Deleting the suspend state has the same effect as performing a hard reset of the virtual machine, or pushing the Reset button on a physical computer, in that any unsaved data in open applications is lost! However if the Virtual Machine won't resume then I do not see any other choice to attempt to run the Virtual Machine.