Solution: 

More information can be found on the FlexNet Publisher Programming Reference for Trusted Storage-Based Licensing Documentation.

To address this, you can

Option 1:

Remove the following lines on the default makefile.act file so that tsactdiag_app and tsactdiag_svr executables are not prepped.

$(PREPTOOL) -v $(APREPXMLDIR)\tsactdiag_app.xml

$(PREPTOOL) -v $(APREPXMLDIR)\tsactdiag_svr.xml

Option 2:

1) Update the x64_n6-11.19.0.0_v6\x64_n6\publisher\tsactdiagTrustedConfigIn.xml to match your PublisherID.

 ie. Snippet of the change 

<?xml version="1.0" encoding="utf-8" ?> 

<TrustedConfigInformation xmlns="FLEXnetPublisher_01EFFF13-92D7-469e-B7CC-35E13C2E8D4A">

            <VersionNumber>6</VersionNumber>

            <PublisherId>xxxxx</PublisherId>

            <Id>127</Id>

            <Revision>tsactdiag</Revision>

            <Seeds>

                 <SeedPart>129C6257</SeedPart>

                <SeedPart>94724A4C</SeedPart>

                <SeedPart>A2C5E526</SeedPart>

                <SeedPart>A6AD539B</SeedPart>

                <SeedPart>39C3EAA0</SeedPart>

                <SeedPart>195B47EA</SeedPart>

                <SeedPart>AA11C2B3</SeedPart>

                <SeedPart>A4E93C2C</SeedPart>

            </Seeds>

 2) Encrypt the tsactdiagTrustedConfigIn.xml file

\x64_n6-11.19.0.0_v6\x64_n6\publisher>tcencrypt.exe -i tsactdiagTrustedConfigIn.xml -o tsactdiagTrustedConfigOut.xml

Processing complete, config output written to file tsactdiagTrustedConfigOut.xml

3) Sign the tsactdiagTrustedConfigOut.xml file

\x64_n6-11.19.0.0_v6\x64_n6\publisher>xmlsign.exe -a ..\ActivationSettings\publisher.xml -i tsactdiagTrustedConfigOut.xml -o tsactdiagTrustedConfigOut.xml

tsactdiagTrustedConfigOut.xml signed..

4) Perform your Production build of your FNP toolkit.

nmake -f makefile.act clean

nmake -f makefile.act