What causes this issue?

The master record for the permit is provided with a usage block. This
may mean that this permit is no longer required.

System Response

How to fix this error?

You can cancel the assignment of the permit to the order. If the permit
has been proposed from the object structure, you can also cancel the
permit there.
If the permit has been assigned to the order automatically, you cannot
cancel the assignment. In this case, set the indicator <ZH>Not relevant
</>.
During automatic determination of permits, permits with a usage block
are neither proposed from the object structure - irrespective of the
indicators for the object - nor using classification.

Procedure for System Administrators

Error message extract from SAP system. Copyright SAP SE.