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Geoprocessing tools based on scripts do not execute when background processing is enabled and ArcGIS Engine Runtime has been installed on the same machine.
After executing the tool, the Results window shows an executing and start message, but nothing further. The status changes to a red 'x'.
ArcGIS Engine Runtime can run tools in the background, similar to ArcGIS for Desktop. When ArcGIS Engine Runtime was the last product installed, it binds to the background processes, which makes them unusable by ArcGIS for Desktop.
This issue has three workarounds: