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When converting labels to annotation using the Convert Labels to Annotation command in ArcMap, this error may appear:
"Cannot add one or more of the annotation to the annotation class. No current record"
This message only appears if the annotation is stored in the Geodatabase, and if an ArcCatalog feature class was created to store the annotation.
After dismissing the error message, the Convert Labels to Annotation dialog box closes and an empty annotation feature class is added to ArcMap.
You have not defined a spatial reference for your annotation feature class in ArcCatalog.
When using ArcMap's Convert Labels to Annotation command, it is not necessary to create the annotation feature class ahead of time. It will create one if one does not already exist. However, this method can be used to correct an existing annotation feature class to avoid this error.