I just ran into this issue. Last week I updated all hosts in the Cluster and also migrated the templates onto another host while migrating running and powered off vm:s. The solution above to deploy a virtual machine from the template fixed the problem. When I converted the template to a virtual machine I noticed that it's asking the question about if I copied or moved the virtual machine.
The environment I'm working in had more hosts and more cluster that haven't been updated yet so that is what makes me think that migrating a template between hosts is causing this issue.