I had this exact error recently building out TKGS in a home lab. I made a few changes to try and resolve.
One of the changes I made was to delete and re-create the DPG that I was using for the service engines frontend network. I remembered I was previously using a DPG that was imported and restored from a backup from another VCSA.
Now it is working, I can see the step that it was failing on was when it reconfigures one of the NICs to change its portgroup for the frontend network I had setup, so I suspect it may have been DPG related.
Another change I made was to the default service engine group. I specified an esxi host to create the SEs on and migrated the controller and the content library for the service engine image to that same esxi host. This was more to address a latency issue on my lab network. I don't think this was the fix, but worth mentioning in case you are also spinning this up in a slow home lab.