Error when copying a project or project template

Question
Why when trying to create a project by copying a project template, following error occurs:

This record cannot be saved because there is no matching state definition in the workflow setup
 

Answer
None of the active project workflows would pick the new project, if it does not match any of the filters defined for the active workflows.

1. Check the filters of active project workflows, identify the fields used for filtering.
2. Edit the source project, and change these field values to ensure that the project would be picked by at least one active project workflow.