No suitable software component is modifiable; cannot create object

What causes this issue?

The object &V1& &V2& &V3& is in the name range reserved for customers.
You can assign objects from this name range to the software components
<LS>HOME</> or <LS>LOCAL</> only.
These software components are not modifiable in this SAP System.
Note:
You assign an object to a software component indirectly when you assign
the object to a package. Each package is itself assigned to a software
component.

System Response

The function terminates.

How to fix this error?

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

Procedure for System Administrators

Check whether you can modify the software components <LS>HOME</> and
<LS>LOCAL</>.
You can set the modifiability of software components in the
<DS:TRAN.SE03>Transport Organizer Tools</> under <LS>Administration</>
-> <LS>Set System Change Option</>.

Error message extract from SAP system. Copyright SAP SE.