When you create a brand new VM and then launch the LFS-liveCD, the VMware BIOS will try to locate a bootable system on the VM's hard drive, but the VM hard drive is empty (has no partitions), so the Vmware boot process will fail-over to the LFS-liveCD - and boot. As part of the LFS build, you create and format the VM partitions but don't install an operating system.
When you rebooted, the VMware BIOS found the partitions but no operating system and stalled (rather than moving on to boot from the LFS-liveCD.)
To boot from LFS-liveCD: hit esc when VMware BIOS is loading to access the VMware Boot Menu, and choose CDROM.
If you wish to always boot from the VM CDROM, hit F2 during VMware BIOS loading, to enter setup to make and save the changes in the VMware BIOS.
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