When running the Dissolve tool in ArcMap, the operation does not complete and the following error message is returned:
Error: ERROR 999999: Error executing function. Invalid Topology [Maximum tolerance exceeded.]
As each feature class has unique sizes and scales, the default x,y tolerance settings may be unable to accommodate the size and scale of the data. This causes the error to be returned as the data has reached the maximum tolerance x,y tolerance setting.
By default, the tolerance setting is set to 0.001 meters or its equivalent in map units. This setting is 10 times the default resolution value and is the recommended settings for most cases. Different tolerance values produce different results for relational and topological operations. Higher tolerance values result in lower accuracy for coordinate data, while smaller tolerance values result in a higher level of accuracy.
Additionally, large feature classes with small scale sizes are very detailed; thus, the likelihood of reaching the maximum x,y tolerance level is greater.