One or more layers failed to draw: The table was not found. [layer]

Error Message

Converting labels to annotation returns the following error:

Error
One or more layers failed to draw:
The table was not found. [layer]
The Microsoft Jet database engine cannot find the input table or query '<layer>'. Make sure it exists and that its name is spelled correctly.

Cause

This occurs when converting labels to annotation during an edit session, and choosing not to save changes at the end of the session.

Solution or Workaround

Convert labels to annotation outside of an edit session or save edits after the conversion operation.