This issue is caused by the VMFS3-DM (Data Mover) having to use contiguous memory space on the host. When the host's kernel memory usage is greater than 50% and memory is fragmented, the destination machine cannot allocate more space and the operation fails. In the example log entries, the host has been up over 161 days.
Note: The 50% memory usage mark is not absolute. Memory use may have to be reduced well below that value.
This issue is resolved in the patch release for ESX/ESXi. For more information, see:
To workaround this issue when you do not want to apply the patch, migrate sufficient virtual machines off of the host to reduce memory consumption, or shut down non-critical virtual machines temporarily.