It very much depends on what HDD Regenerator does. I assume at a minimum it reads all sectors, or reads then writes them back and checks for (no) differences.
When the disk (the SMART system) detects sectors that are 'weak' (recoverable read errors) it may decide to move the data to a new sector and mark the old one as bad.
If OTOH the sector can no longer be read, many programs give up on it, remap the sector and that's it. Let's call this 'Type 1' repair.
However, software may still be able to recover data in damaged sectors (before marking them as bad) if it works closely with the SMART subsystem. Let's call this 'Type 2' repair. The only tool that I know of that does this is Spinrite. Given your results it looks as if HDD generator cannot do this (and this page does not say so either).
If the software cannot recover the data, the files which previously used those sector will be corrupt. There may be occassions where this corruption can be ignored (e.g. a text file would have some garbage in it), but if the damaged sectors are in a virtual disk image you likely will have problems.
You are now left with two unrelated questions:
1) Can I recover the data?
Since you have now marked those sectors as bad (and copied incomplete or no data to the new sector), even following up with a Type 2 repair will no longer work.
A disk image copy will not solve this. A disk image can be handy if you want to easily move all data to an identical new disk, so if you decide to buy a new disk, transfer the image first and then try to recover what you can.
If it's only the VM that you have trouble with, search/ask around if people have ever managed to recover data from a damaged VMWare disk (This search result may be an option). (And again: only try on the copy!)
2) Should I stop using the disk?
If you are able to succesfully do Type 2 repairs you can keep using the disk until either
the SMART subsystem has no more remappable sectors. It will give a warning before that happens.
you see the rate of recoverable errors increasing (for all I know you just bumped your laptop into something).
If you can only do Type 1 repairs you will have to estimate how more bad sectors will develop and if you take that risk. It depends on too many factors (age of the disk, manufacturing quality, environmental factors) to give an answer here. Personally, if I cannot rely on being able to succesfully 'Type 2'-repair sectors, I would ditch the disk.
Regularly scanning the entire disk surface will help prevent future errors because the weak sectors are detected in time.