This error indicates that the Fibre Channel peer exists and can communicate with iPXE, but the peer does not support operation as a target device.
Things you can try:
Check that you are using the correct Fibre Channel WWPN in your root-path.
If you are trying to boot from a software target, check that the target functionality is enabled. For example, if you are using SCST/FCST then check that the file /sys/kernel/scst_tgt/targets/fcst/<WWPN>/enabled shows the value 1.