It is technically impossible to run the live iso properly on vmware workstation 12 player (other versions probably too). Note: I had no problems running it on virtual box latest version.
The reason for the problem seems to be that kwindow manager is crashing.

 449 ?        Ssl    0:00 /usr/bin/ntpd -g -u ntp:ntp
   647 ?        Ssl    0:00 /usr/bin/sddm
   651 tty1     Ss+    0:01 /usr/lib/xorg-server/Xorg -nolisten tcp -auth /var/run/sddm/{088a52a0-c407-47eb-8172-df65b56b70e8} -background none -noreset -displayfd 18 vt1
   658 ?        S      0:00 /usr/lib/sddm/sddm-helper --socket /tmp/sddm-auth214d2e52-f113-4bdf-827e-468f84dce242 --id 1 --start /usr/bin/startkde --user live --autologin
   660 ?        Ss     0:00 /usr/lib/systemd/systemd --user
   661 ?        S      0:00 (sd-pam)
   664 ?        S      0:00 /bin/sh /usr/bin/startkde
   673 ?        S      0:00 dbus-launch --sh-syntax --exit-with-session
   674 ?        Ss     0:00 /usr/bin/dbus-daemon --fork --print-pid 5 --print-address 15 --session
   702 ?        Ss     0:00 /usr/bin/gpg-agent --daemon --pinentry-program /usr/bin/pinentry-qt
   705 ?        Ss     0:00 /usr/bin/ssh-agent -s
   719 ?        S      0:00 /usr/lib/kf5/start_kdeinit --kded +kcminit_startup
   720 ?        Ss     0:00 kdeinit5: Running...
   721 ?        Sl     0:00 klauncher [kdeinit5] --fd=9
   724 ?        Sl     0:03 kded5 [kdeinit5]
   738 ?        S      0:00 kwrapper5 /usr/bin/ksmserver
   739 ?        Sl     0:00 /usr/bin/ksmserver
   740 ?        Sl     0:00 /usr/bin/kaccess
   746 ?        Sl     0:00 /usr/bin/kglobalaccel5
   750 ?        Tl     0:03 kwin_x11
   751 ?        SNl    0:00 /usr/bin/baloo_file
   753 ?        Sl     0:03 /usr/bin/krunner
   757 ?        Tl     0:10 /usr/bin/plasmashell --shut-up
   767 ?        Sl     0:00 /usr/bin/kactivitymanagerd start-daemon
   769 ?        Sl     0:00 /usr/lib/polkit-kde-authentication-agent-1
   771 ?        Sl     0:00 /usr/bin/kactivitymanagerd
   787 ?        Sl     0:00 /usr/bin/xembedsniproxy
   792 ?        Sl     0:00 /usr/bin/octopi-notifier
   793 ?        Sl     0:00 /usr/bin/welcome
   800 ?        S<l    0:01 /usr/bin/pulseaudio --start --log-target=syslog
   801 ?        SNsl   0:00 /usr/lib/rtkit/rtkit-daemon
   810 ?        S<     0:00 [krfcommd]
   812 ?        Ssl    0:00 /usr/lib/udisks2/udisksd --no-debug
   825 ?        Sl     0:00 /usr/lib/telepathy/mission-control-5
   827 ?        Sl     0:00 /usr/lib/libexec/kf5/kscreen_backend_launcher
   886 ?        Tl     0:00 /usr/bin/kwin_x11 --crashes 1
   887 ?        Sl     0:00 /usr/lib/drkonqi -platform xcb -display :0 --appname kwin_x11 --apppath /usr/bin --signal 4 --pid 750 --appversion 5.7.2 --programname KWin --bugaddress submit@bugs.kde.org --startupid 0
  1120 ?        Sl     0:00 /usr/bin/kuiserver5
  1237 ?        Tl     0:00 /usr/bin/kwin_x11 --crashes 2
  1238 ?        Sl     0:00 /usr/lib/drkonqi -platform xcb -display :0 --appname kwin_x11 --apppath /usr/bin --signal 4 --pid 886 --appversion 5.7.2 --programname KWin --bugaddress submit@bugs.kde.org --startupid 0
  1253 ?        Ss     0:00 login -- root
  1265 ?        Sl     0:00 /usr/lib/octopi/pacmanhelper
  1416 ?        Ss     0:00 /usr/lib/systemd/systemd --user
  1430 ?        S      0:00 (sd-pam)
  1439 tty2     Ss     0:00 -bash
  1631 ?        Tl     0:00 /usr/bin/kwin_x11 --crashes 3
  1632 ?        Sl     0:00 /usr/lib/drkonqi -platform xcb -display :0 --appname kwin_x11 --apppath /usr/bin --signal 4 --pid 1237 --appversion 5.7.2 --programname KWin --bugaddress submit@bugs.kde.org --startupid 0
  1668 ?        SLl    0:00 /usr/lib/kdeconnectd
  1681 ?        Ss     0:00 /usr/sbin/cupsd -l
  1702 ?        Sl     0:00 /usr/bin/kwin_x11 --crashes 4  <<<================= HERE UP TO 4 times.
  1703 ?        Sl     0:00 /usr/lib/drkonqi -platform xcb -display :0 --appname kwin_x11 --apppath /usr/bin --signal 4 --pid 1631 --appversion 5.7.2 --programname KWin --bugaddress submit@bugs.kde.org --startupid 0
  1712 ?        Sl     0:00 /usr/lib/drkonqi -platform xcb -display :0 --appname plasmashell --apppath /usr/bin --signal 4 --pid 757 --appversion 5.7.2 --programname Plasma --bugaddress submit@bugs.kde.org --startupid 0 --restarted
  1820 ?        S      0:00 [kworker/0:0]
  1837 ?        S      0:00 [kworker/0:2]
  1838 tty2     R+     0:00 ps ax

some other strange error is reported by systemctl

Sep 05 21:02:33 localhost plasmashell[1711]: Both point size and pixel size set. Using pixel size.
Sep 05 21:02:33 localhost plasmashell[1711]: Couldn't find node arrow-down. Skipping rendering.
Sep 05 21:02:33 localhost plasmashell[1711]: Couldn't find node arrow-up. Skipping rendering.
Sep 05 21:02:33 localhost plasmashell[1711]: Couldn't find node arrow-right. Skipping rendering.
Sep 05 21:02:33 localhost plasmashell[1711]: Couldn't find node arrow-left. Skipping rendering.
Sep 05 21:02:33 localhost audit[1711]: ANOM_ABEND auid=1000 uid=1000 gid=100 ses=1 pid=1711 comm="plasmashell" exe="/usr/bin/plasmashell" sig=4
Sep 05 21:02:33 localhost kernel: traps: plasmashell[1711] trap invalid opcode ip:7f7f962405f6 sp:7ffc2ad929c0 error:0
Sep 05 21:02:33 localhost kernel: audit: type=1701 audit(1473109353.406:7): auid=1000 uid=1000 gid=100 ses=1 pid=1711 comm="plasmashell" exe="/usr/bin/plasmashell" sig=4 <<<====== HERE
Sep 05 21:02:33 localhost kdeinit5[724]: Service  "org.kde.StatusNotifierHost-1711" unregistered

Full logs are available however the issue is extremely easy to reproduce. Just download the vmplayer and try.
Also trying to install the os (as it is without running window manager) is also not possible as the keyboard input is not recognized. That leads me to believe there is some connection between the keyboard & kwin.

I like the idea if your distro and am willing to help.