Based on your description and the documentation, your issue is **directly related to the TestOps migration**. You’re experiencing test execution failures on TestCloud after migrating to the new Katalon TestOps platform, with tests stuck at “Setup environment and test project…” and showing “Error” status.
## Root Cause
**License Assignment Issue After Migration** - This is a **confirmed known issue** documented in Katalon’s official troubleshooting guide.
When you migrated to the new TestOps platform:
- **Licenses were NOT automatically transferred** from the Account level to the Organization level
- TestCloud requires Organization-level licenses to validate and execute tests
- Without proper license assignment at the Organization level, test execution fails during the environment setup phase
This explains why:
- Tests don’t start execution (license validation fails)
- You only see “Setup environment and test project…” in logs (execution stops at validation)
- No detailed error logs appear (it’s a license validation failure)
## Solution
**Assign Licenses to Your Organization** (Required Step)
Follow these steps to resolve the issue:
1. **Sign in to Katalon TestOps** with your Admin account
2. Navigate to **Admin Settings** > **Organization Settings** > **License Management**
3. Switch to the **KRE tab** and select **Assign Dedicated Licenses**
4. **Select your Organization** from the dropdown
5. **Specify the number of licenses** you need for test execution
6. Click **Assign**
**After completing these steps**, your TestCloud test executions should work normally for both:
- Individual Test Suite executions
- Test Suite Collection executions
### Important Notes:
- **Account Admin access required** - Only Account Administrators can assign licenses
- **Organization must match** - Ensure you’re assigning licenses to the Organization where your TestCloud tests are configured
- **TestCloud subscription required** - You must have an active TestCloud license or trial in addition to the KRE licenses
### Source
[KRE Tests Fail After Migrating to TestOps - Katalon Documentation]( KRE tests fail after migrating to TestOps | Katalon Docs )
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**If you’ve already assigned licenses and still experience issues**, please verify:
- The Organization ID in your test configuration matches the Organization where licenses are assigned
- Your TestCloud subscription is active
- Your user account has appropriate permissions in the Organization