Recently, when I tried to copy a large file (around 1 GB) to Virtual Machine (VM) from the host machine, it froze either of the machines. However, when I tried to copy a large file from the VM to the host machine, everything was normal.

Found a solution for this problem:
Try allocating your Virtual Hard Disk's space upfront. Unfortunately, I didn't find a way to modify my existing virtual hard disk, so I added a new virtual drive and pre-allocated its space, and it resolved the file transfer problem.