Hi sinklar,
Welcome to the Fusion 360 community, and thanks for posting this issue!
This error is being returned because the lofted T-Splines body isn’t able to be converted to a valid surface model. Taking a look at your image, it looks like there are a lot of edges running down the loft (some of these appear to be converging, which is probably what’s causing the problem). Was this intentional? In general, I’d expect a loft, by default, to have much fewer edges; something like this:

If you got this many edges by default, there may be something going wrong: would it be possible to share this model? (To do this, select Export Archive from the application menu, then attach the f3d file to the forum, or you can email it to me at jake (dot) fowler (at) autodesk (dot) com).
You should be able to adjust the number of edges using the ‘Deviation’ settings (increase the Deviation to reduce the number of edges); or by changing the Length Spacing to Uniform, you can directly specify the number of edges running down the loft. Reducing the number of edges should hopefully get rid of this problem.
Thanks again, and hope this helps!
Jake

Jake Fowler
Principal Experience Designer
Fusion 360
Autodesk