I see it on occasion but I can't tell you for the life of me when exactly it occurs except that with VI Server References coupled with case structures and shift registers. Sometimes the rules for deciding which actual data type the wire is seem to be a bit backwards (It retains old types even though the only definitive source has changed).
What LV version? That existed in LV 8.6 and earlier. Haven't seen it since.
BTW, fixing it can be made faster by ctrl+shift+click on the broken run arrow -- that'll fix all the VIs in memory.