You can get the "create policy error" when first starting to use dynamically created tasks. This error string is not documented and only shows up deep inside code generated by the XDC system.
I am posting this so it shows up in searches for the error string.
Here is the console output you will see:
[CORTEX_M4_0] System Clock: 120000000
ti.sysbios.knl.Task: create policy error
xdc.runtime.Error.raise: terminating execution
The solution is to check the "Enable Dynamic Instance Creation" box on the BIOS Runtime Options dialog as shown below. It is not clear why a "Suggest checking Runtime Options setup" is not one of the messages that happens in response to this error.
Here is the dialog you need to set up: