Solution
The error occurs when TestStand is having trouble accessing the Database activeX server. Here's a couple things to try: 
Navigate to 
Start » National Instruments » TestStand x.x » TestStand Version Selector. Select the version of TestStand you are trying to use (even if it is the only option) and click 
Make Active. This will re-register all the necessary activeX components. 
The activeX server for database is stored in the follow location:
C:\Program Files (x86)\National Instruments\TestStand 20xx\Components\Models\TestStandModels\Database\DBOptions\TsDBOptions.dllIf the version selector does not fix the issue, you can try following the 
steps to manually register the server .