Document type &1 is allowed only for business application "Other"

What causes this issue?

In the settings for document type &V1&, you have specified posting level
0C (<LS>Adjustment Entry for Universal Document</>) and business
application &V2&. For posting level 0C, however, only business
application <LS>Other</> is allowed.

System Response

The settings for document type &V1& are inconsistent and cannot be
saved.

How to fix this error?

Correct the settings for document type &V1& by choosing business
application <LS>Other</>.

Procedure for System Administrators

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

Error message extract from SAP system. Copyright SAP SE.