How do I solve the error 'Invalid database version'?

Make sure your Projects data folder (DesignSpark Electricaldata\Projects) is not located on a cloud sharing directory (Dropbox, OneDrive, Box, etc.) and only on a local (non-synced) folder.

Also, check if there is an 'Update' folder in this path: C:\ProgramData\DesignSpark Electricaldata

If yes, please change the 'Application data folder' in the software settings to C:\ProgramData\DesignSpark Electricaldata\Update, click APPLY->OK and restart DSE.