This issue occurs if the DNS records of destination ESXi host/vCenter are not resolvable at the source machine.
To determine if your MACHINE_NAME is resolvable, use nslookup from your Windows command line:
Example of a successful MACHINE_NAME lookup:
C:\>nslookup myserver
Server: dns1.mydomain.net < FQDN of DNS Server that the record resides>
Address: 10.10.10.20 <IP Address of DNS Server>
Name: myserver <Machine Name>
Address: 10.10.10.30 <Machine IP Address>
Example of an unsuccessful MACHINE_NAME lookup:
C:\>nslookup myserver
Server: dns1.mydomain.net
Address: 10.10.10.20
*** dns1.mydomain.net can't find myserver: Non-existent domain.