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If you are on a subdomain of the same hosting account you do not need to use the Site Transfer Wizard at all.

• Create your subdomain. Make sure the subdomain's web root is outside the web root of your main site to prevent issues with SEF URLs!
• Create a database for your subdomain
• Create a database user for your subdomain
• Assign the database user to the database, giving it all permissions. This is an important step that many people, myself included, tend to forget.
• Take a backup of your site.
• Copy the backup archive to your subdomain's web root using your hosting control panel's file manager.
• Download Kickstart Core from our site's Download page and extract the ZIP file.
• Upload kickstart.php to your subdomain's root.
• Access the kickstart.php URL of your subdomain e.g. https://mysubdomain.example.com/kickstart.php

Now you just follow the instructions on your screen, remembering to enter the new subdomain's database information. Also remember to click on the override tmp and log paths checkbox in the Site Setup page. That's it!

The Site Transfer Wizard is mostly something you might need when you are transferring larger backup archives between hosts. The thing is, most hosts prevent loopback connections i.e. the server connecting by FTP/SFTP back onto itself. That's why the Site Transfer Wizard is definitely not a good choice for transferring within the same server, and especially pointless transferring between subdomains under the same hosting account. In the latter case you can just move or copy the file yourself from the hosting control panel's file manager with far less effort and no configuration whatsoever.