I have the exact same question about that error. However, in my case, after showing that same error my PS/2 model 8556 proceeds with counting the RAM and even attempts to boot, but I have no working floppy:

Help IBM PS/2 model 8556 wiring 1.44MB floppy

So, I think even we see the same error, in your case something more is wrong, because you get nothing further.

@SSTV2 helped me solve this error:

A quick online search pointed me to this page: https://ardent-tool.com/trouble/SCSI_Errors.html and error itself can be broken d […]
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A quick online search pointed me to this page:
https://ardent-tool.com/trouble/SCSI_Errors.html
and error itself can be broken down to:

0037 - SCSI on the System board;
0200 0000 - Configuration error. No hard disk found at PUN 6, LUN 0 for 161, 162, 165 system error path. Might be an unsupported configuration.

essentially, it needed to set the SCSI ID of my hard-drive to 6 (I was using SCSI hard drive that by default has the SCSI ID set to 0). Of course, you need to use the "Reference Diskette" to create IML ("Initial Microcode Load") region on that HDD. Basically, IBM use the last 3MB of the HDD to store there portion of the BIOS. I don't remember which menu was in the "Reference Diskette" that creates the IML region, because I've done it once in my life, but it's there - it will delete everything on the HDD. So, after IML region is created you need to install the OS and your data.