Final answer:
Gradual conversion from terminal hair follicles to vellus-like follicles occurs in androgenetic alopecia.
Step-by-step explanation:
Gradual conversion from terminal hair follicles to vellus-like follicles occurs in androgenetic alopecia. Androgenetic alopecia is a common form of hair loss that is influenced by hormones and genetics. In this condition, hair follicles become smaller over time, leading to the production of thinner and shorter vellus-like hairs. This type of hair loss is more common in men and can be managed with medications and treatments.