BBIS Error encountered on Submit after changing email communication preference.

On a Communication Preference form after selecting a specific Appeal and changing the email address it should be sent to via the email address dropdown, clicking Submit button triggers an error message:
 
Error message:
Server was unable to process request. -->Data could not be saved. cannot save a mail preference that refers to an invalid email address. --> cannot save a mail preference that refers to an invalid email address. Transaction count after EXECUTE indicates a mismatching number of BEGIN and COMMIT statements. Previous count = 1, current count = 0.
BBERR_ORIGINAL_PROCEDURE:TR_MAILPREFERENCE_INSERTUPDATE_EMAILVALID
BBERR_ORIGINAL_LINE_NUMBER:14
Download and install the latest patch, which contains all fixes from previous patches. If you are running an older version, download and install the latest version and then the patch. 

Environment

 3.0.516 SP7
 3.0.516, Service Pack 10

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