While fixing this error the first thing to check is that you have all correct Registry values for your Oracle Home, as well as the Oracle installation folder and the BIN subfolder paths should be present in the PATH environment variable.
Here's one more reason why this error occurs in Toad. It is when you have more than one Oracle Client installed on your machine. Even when you select the correct Oracle Home in "Connect Using" field of Toad Login screen, you still get this error. So, to resolve this you need to go to the installation folder of that Oracle Home (e.g. C:\Oracle\ora92\), then go to the BIN subfolder and open Oracle.Key in Notepad. Confirm that it is showing Registry entry/path to the correct Oracle Home (e.g. SOFTWARE\ORACLE\HOME0 or SOFTWARE\ORACLE\HOME1 or whatever your Oracle Home is).
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