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When selecting a Shapefiles in ModelBuilder the following errors appear.
To use a Shapefile, it is required that the folder containing the .shp file also contains (at a minimum) the supporting .shx and .dbf files. These files must also have matching names.
If these files are located in the same folder and have matching names then try opening the Shapefile in ArcMap and then exporting it to a new Shapefile.
Then use that new Shapefile in ModelBuilder.
Wikipedia: Shapefiles
"Invalid ESRI ShapeType" or "The file selected is not of the specified type" error message
Error importing in ModelBuilder from ProjectWise: Invalid ESRI Shapefile
Importing external data using ModelBuilder - Building and updating