Attempting to launch clip volume tools throws information message "This action is prevented by capability variable."

Error or Warning Message

Expanding the message center/details indicates CAPABILITY_VIEW_CLIP is defined in the workspace configuration.

Contact your Site admin to verify if this capability is added to standards.cfg or to any other workspace configuration file.

For more information review the capability.list available in the folder

…\Program files (86)\Bentley\MicroStation v8i (SELECT Series)\config\system\

Note: Bear in mind that if you are working in DWG Workmode some functionalities are also disabled and this could also be included between them.

Verify from Workspace\configuration variable if Ms_Workmode is set as DWG. See image below

When the DWG workmode is enable a DWG icon is displayed in the status bar at the bottom. See image

This configuration variable Ms_Workmode can be set at the user, Workset,Workspace or Organization level.

Review also Product functionality in DWG workmode in MicroStation Help

Site admin can remove capability from standards.cfg or to any other workspace configuration file.

Note: you can create a debug file to investigate configuration issues as it contains all the variables included in all the configuration files processed by MicroStation. Review this wiki in relation to how to quickly generate a debug file http://communities.bentley.com/products/microstation/w/microstation__wiki/11081.how-to-quickly-generate-a-debug-file

if this capability is not found there, move to option 2

Review if Ms_Workmode=DWG has been set. If so, restablish value to Ms_workspace=DGN

Note: When working in DWG workmode certain MicroStation functionalities are disable so that the file will be compatible with the DWG format.

Normally a part from not being able to use Clip Volumen Tools you will not be able of creating more than 1 design model per file, etc.

Review the link provided Using The DWG Work Mode In MicroStation V8 [CS] also to see what other functionalities are disabled