Unable to move virtual machines to a New Folder once migrated to vi3

Environment: I'm migrating from 2.5.3 > vi3.01

Due to issues with esxRanger after upgrading the database I've decided to create a new database from scratch on the 3.01 side since I only have 5 hosts and 12 Virtual Machine Groups on the 2.5.x environment.

I then Removed the 2.5.x host from the 2.5.x database and added it as a new host on the vi3 environment. Under Host and Clusters I want to create a New Folder to match the Virtual Machine Groups folders I had in 2.5.x. Once I create a new folder on vi3 I am unable to move a virtual machine from either the 2.5.3 or vi3 host to these new folders??

I've upgrade the virtual hardware as well as updated the vmtools and still no luck?? What am I missing?

Any help would be much appreciated.