In the situation where the VM has been moved to a different standalone host (this does not apply when replicating to a cluster or vCenter) than it was specified, it is very likely that the replication will fail the first time, and when it is then mapped to the replication job via the Low Bandwidth Seeding options the job will be successful. The folders will then be created like in the above description, but files that are copied over via the NFC Connection Stream will be in those folders (The VMX, VMFX, NVRAM).
In this situation, make the above change to the replication job, but prior to deleting the folders, let the job run successfully once and make sure the original folder has it’s VMX, NVRAM, and VMFX files updated.