Service Fabric on premise: Partition is below target replica or instance count

Question

I have an error in Service Fabric on premise on my local cluster. I see it in Service Fabric Explorer web portal in one of my stateless service. I can't find any exception in application, my disk is not running out of memory. I also tried to look for some logs in C:\SfDevCluster\Log\Traces but I can't see any errors connected with this. What can be the source and where to look for solution?

Error event: SourceId='System.FM', Property='State'.
Partition is below target replica or instance count.
fabric:/localinstance/TestService 1 1 66712658-4aa3-48ce-80c6-b6e9cf258e56
  InBuild _Node_2 131789911365352647
  (Showing 1 out of 1 instances. Total available instances: 0)


Unhealthy event: SourceId='System.RA', Property='ReplicaOpenStatus', HealthState='Warning', ConsiderWarningAsError=false.
Replica had multiple failures during open on _Node_2. API call: IStatelessServiceInstance.Open(); Error = System.TypeInitializationException (-2146233036)
The type initializer for 'Microsoft.ServiceFabric.Services.ServiceTrace' threw an exception.
   at Microsoft.ServiceFabric.Services.ServiceTrace.GetTraceIdForReplica(Guid partitionId, Int64 replicaId)
   at Microsoft.ServiceFabric.Services.Runtime.StatelessServiceInstanceAdapter..ctor(StatelessServiceContext context, IStatelessUserServiceInstance userServiceInstance)
   at Microsoft.ServiceFabric.Services.Runtime.StatelessServiceInstanceFactory.System.Fabric.IStatelessServiceFactory.CreateInstance(String serviceTypeName, Uri serviceName, Byte[] initializationData, Guid partitionId, Int64 instanceId)
   at System.Fabric.ServiceFactoryBroker.<>c__DisplayClass9_0.b__0(IStatelessServiceFactory factory, ServiceInitializationParameters initParams)
   at System.Fabric.ServiceFactoryBroker.CreateHelper[TFactory,TReturnValue](IntPtr nativeServiceType, IntPtr nativeServiceName, UInt32 initializationDataLength, IntPtr nativeInitializationData, Guid partitionId, Func`3 creationFunc, Action`2 initializationFunc, ServiceInitializationParameters initializationParameters)
For more information see: http://aka.ms/sfhealth