I found this, which worked for me:

So, it is not a bug - per say...

I suspect that what is happening is that you (we - as that is my case too) all have an intel processor with integrated graphics that supports Vulkan instruction set... well LM Studio seems to try to use it as a graphic card.

And depending on which device it tries to put the neural network on (and the size of the prompt wrt VRAM) it just fails.

So, the fix is easy, go into the configuration of your runtime, get into the Hardware tab and switch off the integrated graphics. (see the disabled toggle on the GPU section next to the Intel UHD graphics)