This error may occur if the system does not have enough memory, I was running a VM at 4GB; when I scale up to 6GB, it’s working fine. in some cases, This error comes up if you don’t have local privileges, therefore, you need to check you local admin privileges.
If you already checked the previous reasons and the problem not solved! so you need to clear the cache of the following Folders (If didn’t work delete them):
- %USERPROFILE%\AppData\Local\Microsoft\WebsiteCache
- %USERPROFILE%\AppData\Roaming\Microsoft\SharePoint Designer\ProxyAssemblyCache
- %USERPROFILE%\AppData\Roaming\Microsoft\Web Server Extensions\Cache
The file is located in the 14 hive under Template\1033\workflow.Your WSS.Actions file contains a reference to a custom action .dll. Delete WSS.Actions file and your designer should start working again.
Make sure you take a backup of the file first.
Reference: https://mohamedelkassas.wordpress.com/2014/12/26/the-list-of-workflow-actions-on-the-server-references-an-assembly-that-does-not-exist-some-actions-will-not-be-available/