Same issue here!
Was able to convert mulptiple 1.0 projects without issue but now ran into the exact same thing.
I read somewhere not removing the old skydome device before converting might be the cause but not sure of that.
When converting any old project I would always get a pop up similar to this one and then click “set verse path” wich would be followed by an error prompt.
Then to fix this I would use this method that was posted here a while back. (fix posted by Dave)
This would always work and I had a conversion without issues with multiple projects.
However on my latest project that I tried to convert and where I ran into the issue I clicked cancel at the “set project verse path” box. Then the project converted to a blank one exactly like yours.
Not sure if this caused it but it was just my experience, hope it gets resolved soon.