This error indicates that the Windows file server may have run out of change notification handles. To work around this, you can use the "-frozen" option for ADDPATH:
addpath -frozen <pathname>
This option adds the directory to the path but does not take out a change notification handle for that file.
This option should be used with care. The MATLAB files accessed by the workers should not be modified during task execution. As long as modifications are made between jobs and the ADDPATH commands are run once per job, workers will see the updated code in subsequent jobs.
For more information on change notification handles, execute the following commands at the MATLAB command prompt:
See the related solution on Change Notification Handles below for more information.