Invalid TMS configuration for &1

What causes this issue?

An error occurred in the TMS communication layer.
System: <LS>&V2&</>
Function: <LS>&V3&</>
Error: <LS>&V4&</>

System Response

The function terminates.

How to fix this error?

The transport system configuration of the specified system is
inconsistent. Check this using transaction STMS.

Error message extract from SAP system. Copyright SAP SE.