This occurs in situations where a correct path (directory) is specified but the directory does not exist
Check the entry carefully.
The prompt 'Create directory' usually appears and you can choose to create the directory if required.
You can move off the field as the path is correct - even if the directory does not exist. In many cases you can also delete the entry and leave the path blank so that you can exit from the edit box.
This message can occur anywhere that a path name is required, for example, System parameters, Copy / Convert dialog etc.
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