Am a linux person myself, but the process should be the same.
The restore process uses /moodledata/temp/backup/ as it's rebuilding area. When it sees a .zip it assumes a backup that is not compat with the new system and attempts to unzip, then rebuild the backup into a version 2 ... a .mbz. Then it restores.
Check the /moodledata/temp/backup/ folder for directories with long names - bunch of letters/numbers (name is taken from generated contenthash). See any residual files (.xml, folders, and/or .mbz file?
The failed_move_converted_into_place have never see before, but sounds like the conversion process completes, but then cannot move files/folders to another for further processing. Check IIS setting/permissions/ability to move files.
'spirit of sharing', Ken