ArcMap returns an application error upon closing if installed on Windows 8.1

Error Message

"ArcGIS Desktop has encountered a serious application error and is unable to continue."

Steps to Reproduce

1. Install Windows 8.1 or upgrade from Windows 8.0 to 8.1.
2. Install ArcGIS Desktop 10.2.
3. Launch ArcMap and load a sample map or add a shapefile.
4. Close ArcMap or edit the map using editing tools.

Closing ArcMap through menu bar (File > Exit), or clicking the 'Close' button causes the application error. Editing the map also causes the application error to occur randomly.

Cause

ArcGIS Desktop 10.2 is supported on Windows 8, but not Windows 8.1, however ArcGIS 10.2.1 has been certified for Windows 8.1.

Note:
Esri recommends reading the system requirements of any installed software before upgrading the operating system.

Solution or Workaround