Well there’s your mistake: using VMware on a Linux host.
QEMU/KVM is where it’s at on Linux, mostly because it’s built into the kernel a bit like Hyper-V is built into Windows. So it integrates much better with the Linux host which leads to fewer problems.
Ubuntu imho is unstable in and of itself because of the frequent updates so I’m looking for another distro that prioritizes stability.
Maybe, but it’s still Linux. There’s always an escape hatch if the Ubuntu packages don’t cut it. But I manage thousands of Ubuntu servers, some of which are very large hypervisors running hundreds of VMs each, and they also run Ubuntu and work just fine.