Here is the error
2016-11-07T09:45:33.296-05:00 warning vmware-converter-worker[06188] [Originator@6876 sub=Default] [,0] [NFC ERROR] NfcNetTcpWrite: bWritten: -1
2016-11-07T09:45:33.296-05:00 warning vmware-converter-worker[06188] [Originator@6876 sub=Default] [,0] [NFC ERROR] NfcFile_SendMessage: hdr send failed:
2016-11-07T09:45:33.296-05:00 warning vmware-converter-worker[06188] [Originator@6876 sub=Default] [,0] [NFC ERROR] The operation experienced a network error -- Failed to send header message
2016-11-07T09:45:33.296-05:00 info vmware-converter-worker[07256] [Originator@6876 sub=task-5] Worker CloneTask updates, state: 1, percentage: 5, xfer rate (Bps): 63605760
2016-11-07T09:45:33.296-05:00 info vmware-converter-worker[07256] [Originator@6876 sub=task-5] Worker CloneTask updates, state: 1, percentage: 5, xfer rate (Bps): 3168256
2016-11-07T09:45:33.296-05:00 warning vmware-converter-worker[06188] [Originator@6876 sub=Default] [,0] [NFC ERROR] NfcSendFile: Failed to send block track file 'C:\Users\Phil.CORP\Desktop\Windows 7 VM\Windows 7 VM-ctk.vmdk': 3
2016-11-07T09:45:33.296-05:00 error vmware-converter-worker[06188] [Originator@6876 sub=task-6] Sysimgbase_Nfc_PutFile failed in H2MDiskCloneMgr with nfcError 'The operation experienced a network error' (error code:3)
NFC stands for network file control, it is a proprietary file transfer protocol used by Converter. Unfortunately its code base is outside the Converter's one and I can't suggest what exactly this error means.
As an attempt for workaround - in case the source files have a rather poor network connection with the destination ESX, could you try copying them somewhere else and retry the conversion?
Regards,
Plamen