The usage of a SQL database for user settings and cache (for performance reasons) was introduced in 1.02 and is currently still in used in the latest 1.06 patch release.
The database error usually occurs if there has been some corruption to the database image either via bad merging (they shouldn’t be merged) or errors during copying from source.
A quick way to recover from this is to delete the .cache folder located in your project. This will blow away the entire database and Studio will recreate it from scratch. The side effect of this is you would have to re-set your user settings (e.g. source control connection, build output directory, audio asset directory, etc) but all project content will remain intact.
On both Mac and Windows, you might have to change your Finder or Explorer settings to display hidden directories.
We have deprecated the usage of the database in our upcoming 1.07 release so this would no longer be an issue post 1.07.