Flexnet licensing error:-1,359. System Error:2 " No such file or directory"

The following error occured on the client side even though the license manager on the server was working properly.

Flexnet licensing error:-1,359. System Error:2  No such file or directory

This error suggests that the client can't communicate with the server where the license manager is running.
There can be a few reasons for this error:

hosts file on the client and the server - make sure they include the correct IP address and hostname of the client and the server. Details.

The ARTWORK_LICENSE_FILE variable needs to be set properly. Details.

Define a specific port number for the license manager and the daemon and make sure to open these two ports on your firewall on the client and the server. Details.