Error: Object reference not set to an instance of object - when installing the web services and plug in for Luminate Online integration

Users may find that they experience the following error when installing the web services and/or plug in for The Raiser's Edge and Luminate Online integration: 

Error: Object reference not set to an instance of object

This error occurs after selecting the database to apply the integration to and then clicking on Next. Users are then unable to install the Luminate Online integration.
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Environment

 1.4.5326

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