Error during conversion of text from UTF-8 to the current codepage

What causes this issue?

During the conversion of text from UTF-8 to the current system codepage
an error occurred.

System Response

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

How to fix this error?

Text to be converted: "&V1&"

Procedure for System Administrators

Error message extract from SAP system. Copyright SAP SE.