We have an item instance with 'No instance is found for the inventory location attributes' error. I verified the order status, it is closed, but looks like the item in error never made it to installed base. Item setup appears to be correct.
This error normally occurs when Items were issued to a transaction, like WIP, and then before that transaction could complete, the item location was changed.
One scenario which I regularly face is that users manually update child item instance in Install base before WIP for Parent item instance is completed. This cause error for parent item instance, and we don't find parent item instance created in IB.