For 65,000 parcels, you shouldn't need to run the iterate tool, simply run the Load a Topology Tool or the new Fabric Loader included with the Tax Parcel Editing download or you can also get it on GitHub.
The iterate tool should be used for very large datasets that will take a long time to load, 65,000 parcels should be fine.
Chris
I had this problem and here's the solution.
Using the staging database, type7arcs & type6arcs feature classes use the domain IrParcelLineCategory which has coded values 0, 1, 2, 3, 5, 6. Well, if you type this field as 7 (as it says you need to do), you will get the error noted above. It just happened to work fine with type6arcs because you type the field as 6, which is a coded value.
In addition, the domains do not show up when you add new fields unless your source data is in the same geodatabase as your staging data.