Why do I get the error: “Site Area/Untitled could not be found in the repository.” when trying to add a script portlet to a page?

A user is trying to add a new empty instance of the Script Application (formerly Script Portlet) to a page.
When trying to add it, they see the following exception:

com.ibm.workplace.wcm.templating.exceptions.TemplatingExceptionEJQHH0011 E: The content at path location Script Portlet Library/Script Portlet Library Site Area/Untitled could not be found in the repository.”

What can be done to resolve this error?

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