Cause
If you have removed the default Owner, member or Visitor Group on your SharePoint Site, this can cause issues when trying to update the Site membership.
If you are using the Add/Remove Owners or Member actions or using Update Details because the membership is controlled by custom columns, you will see the error above.
Resolution:
To resolve you would need to ensure there is an owner and members SharePoint Group.
Browse to <siteurl>/_layouts/15/permsetup.aspx
This will show if there is an existing Group associated and allow you to create a new group or link to an existing SP Group you already have.
Once the Groups are set correctly, replay the failed job to update the permissions.