I battled with this for a few hours before I finally found the answer here. One of the users on there pointed me into the right direction, so I started looking. I have never been to this advance area of ESXi so I didn't even clue in to what the user on the forum was saying exactly, so I decided to get a couple of screen shots to make it easier, as inevitably there will be more and more people who move to Hyper-V and want to do V2V over from Vmware.
All you have to do if you get the error below is navigate to your vSphere client, select the host(s) where the VM you are trying to V2V resides, and navigate to the configuration tab, click on "System Resource Allocation", followed by Advanced at the top right.
Find "hostd" in the list of resources, and click on Edit Settings:
Set the Memory Limit to unlimited. Your V2V should now complete successfully.
It seems like the hostd process runs out of memory and crashes, causing the V2V process to fail and the host to temporarily disconnect. I would recommend you take the note of the previous memory limit and set it back to that value after you are all done with your V2Vs.
Hope this helps somebody.
Thank you. This was exactly what I needed.
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It looks like I'm having this same problem but on ESX 6.0 the Memory Limit option you highlight is not available. What version where you running?
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