Look in the installation directory of VM and make sure you see a folder called CM . The error is the result of this folder not existing. You have to install the IDE Tools option during the VM install in order for Mover to work with VM
Transferring files to destination for root: Dev Going Up Promotion Tree File transferred: d:/ CM /mover/customer/Project1/about.h File transferred: d:/CM/mover/customer/Project1/CLASS.PBV