A "MicroStation Problem Notification" error is generated when opening up aDGN file in MicroStation V8 2004.
This issue occurs when a single .upf file is shared between different versions of MicroStations, i.e. MicroStation V8 2004 and V8i
Modify your workspace so that the different versions are NOT using thesame Preference file.
This can be achieved by defining the "_USTN_HOMEPREFS" variable to a different path for users / application / versions.
Different versions of MicroStation write to the UPF in different ways, and are incompatible with each other.
UPF files should not be shared in general and each users / application / versions should have its own individual copy of the required .upf files.
https://communities.bentley.com/products/microstation/w/microstation__wiki/13452.troubleshooting-user-preferences-issues