Virtual conversion jobs do not use the latest recovery points though the “Convert latest recovery points to virtual disk” option is selected.
When you run a virtual conversion job with the “Convert latest recovery points to virtual disk” option selected for the first time, it uses the latest recovery point that already exists in the destination location. However, if new recovery points are created in the destination location by automatic backup policies or tasks after the first run of the virtual conversion job, it does not use them. Though the virtual conversion job continues to run, rather than using the latest available recovery point, it uses the same old recovery point for virtual conversion.
Edit the virtual conversion job, save it, and then run it again.