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Depending on essbase version, your essbase.sec file could have been corrupted and causing these issues. Do you have a backup of your clean security file? If no, try to create a new application and database and then copy outline and data from old app. Then you can rename the new app to your needed name.
This error is because the Analytic Services cannot find the mentioned application directory.
Possible solution are:-
-> If the application was copied or deleted using file system controls (such as Windows Explorer or the cp or rm commands), create a dummy application with the original name and use Analytic Services copy or delete the application correctly.
-> Make sure that the directory exists in the correct location.
-> Make sure that you have the correct operating system privileges for the listed directory.
-> See if another user has locked the directory.
-> Make sure that the following environment variables are set correctly:
ARBORPATH (PC and UNIX)
PATH (PC and UNIX)
LD_LIBRARY_PATH (UNIX only)
Make sure that the security file is not corrupt.
If you are using ESSCMD, make sure that the application directory specified in the ESSCMD command is correct.
I have to chime in, if your Essbase application is on Linux or UNIX, you could be facing a case sensitivity issue.