I found a way to increase the VSS timeout value or by sheer luck.
I'm using VMware vCenter Converter 6.6.0, converting a 1-TB VM (v2v) from ESXi 6.7 to ESXi 8.0u2.
I tried restarting VMware services, stopping background services (even though it's at 1% utilization), editing converter-agent.xml (read/writeTimeoutMs), restarting VM, no luck with all of those.
Here's the fix that worked for me:
Using the registry editor, "HKEY_LOCAL_MACHINE\Software\Microsoft\Windows NT\CurrentVersion\SoftwareProtectionPlatform"
- If need be, create a new registry value of type DWORD with name "CreateTimeout"
- Change value to 12000000(2*10*60*1000 = 20 mins) in decimal
I couldn't find supporting document behind this regkey, and there's a typo, the value should be 1,200,000 for 20 mins.
Source: How to Fix VSS Timeout Error VSS_E_FLUSH_WRITES_TIMEOUT | BC Blog (backupchain.com)