Different people are finding different solutions to this same error message. I will add that I had the exact same error and solved the problem by making sure my standalone machine was able to communicate the ESXI host. Specifically I modified the host file on the local machine (c:\windows\system32\drivers\etc\hosts) and added the IP address next to the FULLY QUALIFIED DOMAIN NAME, that is esxihostname.mydomain.local. Once I was able to successfully ping the FQDN I from the machine to be converted, the conversion process worked without the error message! Hope this helps.
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