Good news, the 5.3 release notes have been updated to make this clear:
VMware Horizon View Release Notes
VMware View Client with Local Mode does not support virtual machines with virtual hardware version 10 (HWv10). You will not be able to check out these virtual machines. In vSphere 5.5, virtual machines are created with virtual hardware v10 by default.
Workaround: Create virtual machines with virtual hardware v9 (HWv9) when you create desktop pools for use in local mode.