The problem was that SolidWorks could not find the calloutformat.txt file. I have discovered that there are two SolidWorks folders:
C:\Program Files\SolidWorks Corp\SolidWorks\lang\english
C:\Program Files\SolidWorks Corp\SolidWorks (2)\lang\english
Why are there two? I copied the file from SolidWorks(2) into SolidWorks and it works now. Do I need to use a foldersync utility to sync the two folders into one?
when you do a new install and not callout a new folders for SW2012 you get a second: C:\Program Files\SolidWorks Corp\SolidWorks (2)\lang\english
You might have a problem with Hole callout format file location. Go so SW>System options>File locations>Hole callout format file
and set up location up to calloutformat.txt file.
Default location is: C:\Program Files\SolidWorks Corp\SolidWorks\lang\english
calloutformat.txt is file which contains description in form of attributes of all hole wizard typs, and which are about to be shown in hole table
Of course, it can be customized