Recently we had a case where a secure site with US Defense Department security restrictions noticed a sudden failure to change Item states in Vault Pro 2013.
When an Item was released the Error 1385 occurred with this message:
An error occurred while attempting to change item's lifecycle state.
Additionally the Vlog shows this message:
Error: Soap Exception ( mesg-id = 635421324118763754 )
Exception: SetItemLifeCycleStateFailed 
Since this problem occurred with all Items, even a new one, and for all users on all machines and had been working correctly just prior to the first occurrence, the root cause was thought to be external to Vault.
Ultimately the root cause was confirmed to be a change in the FIPS security policy settings.
As detailed in our previous blog article about interference when opening an AutoCAD Plant 3D project, the Federal Information Processing Standard (FIPS) is a publicly announced standardization developed by the United States federal government for use in computer systems by all non-military government agencies and by government contractors.
Similar to the solution in the earlier blog article, here is what we confirmed as the conditions and the solution.
We had confirmed that the FIPS security policy that was recently enabled was blocking the Items' change state from being completed.
Apparently FIPS is intended to block ASP.NET Web pages that have ViewState enabled and considers the XML file that is being updated with the Lifecycle state change as a web page.
After working successfully for months, at the first occurrence, when an Item's state was changed, that triggered the SetItemLifeCycleStateFailed Error 1385 message.
- After the FIPS algorithm policy was set to 0 in the registry at the key below, we confirmed that the Item's state can be changed successfully.
Warning! Problems caused by improperly editing the Windows registry could render your computer operating system unusable. Microsoft provides a wealth of critical information that you need to know about the registry in the Microsoft Knowledge Base at http://support.microsoft.com/support.
Use the Microsoft® Registry Editor only at your own risk and only after backing up the registry as well as the system.dat and user.dat files as outlined for your operating system in the Microsoft Knowledge Base and in the related solution, TS66513. Additional information about the registry is also contained in the Help topics in the Microsoft Registry Editor.
See also the previous blog article for more details about FIPS' interaction with Autodesk products.