We encountered this error for files larger then 4 MB, the fix is to modify Web.config file.
Uncomment following line,
<httpRuntime maxRequestLength="2097151"/>
Increase request length,
<requestFiltering>
<requestLimits maxAllowedContentLength="2147483647" />
</requestFiltering>
Change following
<binding name="ContentServiceBinding" maxReceivedMessageSize="2147483647" messageEncoding="Mtom" transferMode="Streamed">
<binding name="DocumentManagementBinding" maxReceivedMessageSize="2147483647" messageEncoding="Mtom" transferMode="Streamed">
If using SSL make the setting changes in SSL bindings.
Migration for larger files started working like a charm.
