I've had a little time to troubleshoot this further.
After researching "[VpxdDatastore::UrlToDSPath] Received a non-url" I ran across this kb article.
While this is not an exact match to my issue it does reference the same error message. I looked at my templates and they all have -ctk.vmdk files because they were created from virtual machines with snapshots. While this makes sense from the perspective that the templates are essentially clones of the existing VMs, it doesn't make sense for a template to have a -ctk file since they are supposed to be static copies. So maybe the presence of the -ctk file is causing this exception... easy enough to test. I created a new virtual machine (no OS loaded), confirmed that no -ctk.vmdk file existed for this VM, cloned the virtual machine to a template. Then confirmed that the new template didn't have a -ctk.vmdk file, updated my one-liner from the original post to reference the new template and fail. Dug into the vpxd.log file again and found the same exception message "[VpxdDatastore::UrlToDSPath] Received a non-url". So, still don't have an answer but thought it was worth mentioning to preventing duplicating effort. Thanks as always for your time and effort.
Code:
New-VM -Name TestTemplate -VMHost (Get-VMHost -Datastore esmc4_fucs1_f1c1_incoming_01 | select -First 1) -Datastore "esmc4_fucs1_f1c1_incoming_01" -Template (Get-Template "NewTemplate")
Error:
New-VM : 3/27/2017 2:48:10 PM New-VM The operation for the entity "NewTemplate" failed with the following message: "Could not complete network copy for file /vmfs/volumes/03195b0e-e6997962/NewTemplate/NewTemplate.vmdk"
At line:1 char:1