Solution
This error can happen after upgrading NI software. It occurs because LabVIEW does not identify that the MSDT Build Tools are installed correctly on the system. The NI MSDT Redistributables are a set of several underlying build tools that Microsoft allows NI to redistribute. These tools are used to embed compiled resources in user programs and embed type libraries in DLLs. Embedding this information allows ADEs such as TestStand, LabWindows/CVI, and LabVIEW to automatically discover the programmatic interfaces of those DLLs.
In order to fix this issue please install the MSDT Build Tools which you can download from the following link: MSDT Build Tools 8.1 download.