Try using the dissolve tool from inside ArcCatalog instead of ArcMap. This works for me.
Does anyone know if this issue still exists in ArcGIS v10.2.x? I ask because a model in modelbuilder using the dissolve tool is not working in v10.2.0.
Was anyone encountering this problem using SDE data that was stored using ST_Geometry?
I have not had this problem since moving to 10.2. If you can move I would say go ahead.
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