Based on a brief search of the source code, I believe you have the following condition. One of the Inventory transactions (of type issue) associated with the Production order, so probably attached to one of the Production BOM lines, has a status of On order, Physical reserved, or Ordered reserved, and is linked to the Production report as finished journal found in your error message. From each Inventory transaction, you should be able to find it under the Inventory reference field group on the General tab of the Inventory transaction. Is the Production order already reset to status Created?
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