000372 : Spatial Reference for output is invalid, Please update to allow output to become valid
The tool failed while trying to set the spatial grid indexes for the output.
You can get an estimate for an appropriate spatial grid index by using CalculateDefaultGridIndex on the input dataset. Then temporarily set the SpatialGrid1 and, as necessary, SpatialGrid2 and SpatialGrid3 environments. This will help provide indexes that are appropriate when running the tool. Reset the environments to their previous setting when finished. Learn more about setting spatial indexes.