I didn't have to recreate certificates on ESXi hosts yet, so please read Generate New Self-Signed Certificates for ESXi carefully before you recreate the certificate.
Anyway, what you may try is to add the localhost.localdomain entry to the source ESXi host's /etc/hosts file (if running the conversion for a powered off VM). According to the log file the converter uses Network File Copy which uses encryption. Unless I'm mistaken the UseSSL setting only applies to converting powered on VMs (not sure though).
André