Yes Prasanth, You are correct. I faced the same problem, When I provided refinement to that tiny surface, the error got solved. Thanks
I've found that even remeshing with the same parameters will solve the problem.
This is an old thread, but it's the first hit on Google when I search this error message, so I thought I would chime in. In the past, my solution was to delete the study and start over (crappy). But I tried Phil's solution. I remeshed without changing anything and it worked great!
1. update all components, added components and simulation didn't catch them, restraint transfer will fail. this should also be obvious because the part won't mesh either.
2. make sure the selection is part of the analysis (choose an edge of a part but have the shell defined on another face = restraint transfer failed)
3. make sure the face gets meshed, if the face no longer exists after meshing because it is small, it will fail
4. new study works, could be that there is corruption in your old study, new study, drag and drop everything except for the mesh
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