Does this happen for all shapefiles you try to read or only for a specific one?
If it happens for all files it might mean something is wrong with your installation. I doubt ArcGIS and the background geoprocessing are the cause of it, the regular shapefile reader does not rely on any external components. I would recommend trying to reinstall FME first (maybe upgrade to 2019 if you have the opportunity)
This really happens to all shape files that we try. It works fine on a different environment with the same FME version and architecture.
This is the full error message :
"BADNEWS: Shape Reader: Failed to open dataset 'E:/Shape_Test/S_FIRM_PAN.shp' which is neither an existing file nor directory (shapread.cpp:538)
Shape Reader: Failed to open dataset 'E:/Shape_Test/S_FIRM_PAN.shp' which is neither an existing file nor directory
Read 0 schema features from dataset #1 of 1 (E:/Shape_Test/S_FIRM_PAN.shp)
BADNEWS: Failed to obtain any schemas from reader 'ESRISHAPE' from 1 datasets. This may be due to invalid datasets or format accessibility issues due to licensing, dependencies, or module loading. See logfile for more information (contfile.cpp:850)
Failed to obtain any schemas from reader 'ESRISHAPE' from 1 datasets. This may be due to invalid datasets or format accessibility issues due to licensing, dependencies, or module loading. See logfile for more information"
I'll try to repair the installation
A Shapefile dataset consists of at least three files ( *.shp, *.shx, *.dbf) with the same root name, and missing *.dbf causes the error. Firstly make sure that the source Shapefile dataset has all the required files.
Just to clarify, I just recheck and FME has been able to open other shape files. This happens because the one I use to test has issues, I wasn't aware of it because I've use ArcMap to open the file and it works just fine. In addition, all the files within the dataset was not working so I had assumed that this issue is across the board.
Thank you so much for giving your advice. This is no longer an issue.