This behavior is determined by your settings for the destination disk.
If the destination disk is a thin-provisioned disk, no. If the destination disk is a thick-provisioned disk, yes.
General
If you try to convert a source physical or virtual machine to a managed destination by using thick provisioned disks with large empty spaces on them, the conversion task might fail
If you try to perform a disk-based cloning of a physical or virtual machine to a managed destination by using thick provisioned disks with large empty spaces on them, the conversion task might fail with an error message Unable to clone disk source_disk on the virtual machine virtual_machine_name. The following messages appear in the log file:
[03200 warning 'Default'] [,0] [NFC ERROR] NfcNetTcpRead: bRead: -1
[03200 warning 'Default'] [,0] [NFC ERROR] NfcNet_Recv: requested 264, recevied only 0 bytes
[03200 warning 'Default'] [,0] [NFC ERROR] NfcFile_Stream: Failed to get message from source
[03200 warning 'Default'] [,0] [NFC ERROR] NFC_NETWORK_ERROR
The destination ESX server must return an acknowledgement after each processed NFC write request. If the source sends a large block of zeroes that must be written it might take a long time for the ESX to return the acknowledgement. Thus, the Converter assumes that the operation has timed out and closes the connection, no matter that the ESX server is still writing to the target disk.
Workaround: Change the destination disk type to thin.
And, a link to the user guide for Converter 5.5, if you want to read more about it.