Invalid user status &1 for grant type &2, lifecycle &3

What causes this issue?

The grant is in a user status that is not associated with the lifecycle
status as defined in grant type customizing. The system attempted to
reset the user status to the initial state defined in grant type
customizing, but failed.

System Response

A warning is generated, and the state is not changed.

How to fix this error?

If the current user state has been removed from the network assigned to
the lifecycle status, then ensure that at least one user state is marked
as the initial state, or remove all user states from the network. The
system attempts to set the initial state if one exists or set it to
blank if there is no user network defined for the lifecycle state.

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.