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In this video tutorial, the presenter explains how to fix an internal server error in version 14 Community Edition. The error occurred after adding a new value ("test") to an inherited product template’s type field. To troubleshoot, the presenter suggests checking the Uru log file for errors. The log was recently deleted, so they refresh the browser to update it. The presenter demonstrates that commenting out the newly added code resolves the error, allowing the application to run without issues. This indicates that the problem lies within the code modification made to the selection field.