There is no active (bootable) partition on destination VM. "2015-02-05T21:12:19.076+01:00 [04680 warning 'task-6'] [MoveActiveDiskIfNeeded] GetFirstBootDisk failed, mntapi error: 176".
The partition "2015-02-04T17:49:34.053+01:00 [02724 info 'Default'] Partition type found type HPFS/NTFS(7)/'HPFS/NTFS' start:258048 size:4194304 active primary" should be included in conversion process.
HTH