I installed the converter on a 100% clean Windows 8 workstation and attempted to run the migration and received the exact same 'Invalid Fault error'. However, this time I noticed the following lines in the converter-worker log:
2015-04-17T11:55:08.779-07:00 [04088 info 'Default'] TargetVmManagerImpl::CreateVM: Creating the target VM.
2015-04-17T11:55:08.779-07:00 [04088 info 'Default'] Reusing existing VIM connection to vcenter1-sj1.quantumscape.com
2015-04-17T11:55:08.779-07:00 [04088 info 'Default'] ComputeResource for vim.HostSystem:host-43 is vim.ComputeResource:domain-s41
2015-04-17T11:55:08.779-07:00 [04088 info 'Default'] ResourcePool for vim.ComputeResource:domain-s41 is vim.ResourcePool:resgroup-42
2015-04-17T11:55:08.779-07:00 [04088 info 'Default'] Creating VM OpsCenter-sj1 in folder vim.Folder:group-v22 on host vim.HostSystem:host-43 and resource pool vim.ResourcePool:resgroup-42 (isVirtualApp = false)...
2015-04-17T11:55:11.248-07:00 [04088 error 'Default'] CreateVm task failed: The operation is not allowed in the current state.
2015-04-17T11:55:11.248-07:00 [04088 error 'Default'] TargetVmManagerImpl::CreateVM: Vm creation failed with fault vim.fault.InvalidState
2015-04-17T11:55:11.248-07:00 [04088 info 'Default'] Scheduled timer canceled, StopKeepAlive succeeds
2015-04-17T11:55:11.263-07:00 [04088 info 'vmomi.soapStub[14]'] Resetting stub adapter for server <cs p:0168a5b8, TCP:vcenter1-sj1.mycompany.com:443> : Closed
2015-04-17T11:55:11.263-07:00 [04088 error 'Ufa'] Method converter.worker.ConverterWorker.createVM threw undeclared fault of type vim.fault.InvalidState
2015-04-17T11:56:02.627-07:00 [05272 info 'Default'] [Converter.Worker.DiagnosticManagerImpl] Generating LogBundle.
So it almost looks like the converter isn’t able to create the new VM on the target ESXi host, but I’m not sure why. This is a brand new target host with nothing running on it except a clean build of ESXi 5.5U2, and a single VM running the latest version of vCenter 5.5. I’ve created a new LUN from my storage and mounted it to the iSCSi storage adapter for the target VM that I want to migrate and everything there looks like it's prepped.