I want to know under what conditions this error occurs in Verse.

According to the manual linked above your code is by default fully described as

<transacts><no_rollback> #only allowed in UEFN API 

So if there is an error there is no fallback on error so you will need

<decides><transacts>

Trying control-f to search with transacts

they all say

<decides><transacts>

There may be an error in your code which will now show up