This is a system error not directly related to PEST or Visual MODFLOW. BPL files are Borland Package libraries. My feeling is that there might be some kind of incompatibility issue here that is due to an unsupported operating system.
Please remember that the Visual MODFLOW Classic interface is no longer supported, especially if you run it under newer operating systems. Such error messages might be encountered, therefore. Nevertheless, the GUI is fully functional under most circumstances.
On another note, the PEST version implemented in VMOD Classic is version 4 if I'm not mistaking. That is a very old version of PEST that doesn't use pilot point parameterisation and regularization. Therefore it relies on manual regularization using zones with piecewise homogeneity. In most of the cases,.however, this kind of regularization results in a non-unique inversion process and unsuccessful PEST runs. I strongly recommend reverting to the Visual MODFLOW Flex interface which implements the latest features of PEST.