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As I known, ESD file is not bootable. So you can not convert it to wim file and boot it.
ESD file is just a common compressed file as .rar/.zip/.7z file.
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win7.iso does not appear to be bootable. Neither legacy or UEFI64 booting works.
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You can also use any 64 bit win10/11.iso version from Microsoft and use ultraiso to open this iso file, replace install.wim/install.esd in the source directory of the iso file with install.esd in win7.iso your file, then save it. You will get win7iao.iso as expected