Transaction type &1 cannot be used for activity '&2'

What causes this issue?

Transaction type &V1& that you entered or the standard transaction type
which is specified for activity '&V2&' is not allowed. Reason: &V3&.

System Response

The system issues an error message and will not allow you to continue with this transaction until the error is resolved.

How to fix this error?

Check the standard transaction type specified in Customizing for
activity '&V2&', or check the transaction type you entered.
.

Procedure for System Administrators

Error message extract from SAP system. Copyright SAP SE.