I am getting a 109 topology error in beta 10.1: Validate Topology failed. A failure was detected inside the topology engine overlay processor. [error id: 109]
I am also working with a support analyst on this issue, but for version 10.0 SP3. I had to test whether this was reproducible at 10.1 and since 10.1 is still in development, we wanted to notify the beta team and hope that this is fixed by final release.
For more info on this issue, please refer to the current incident #975836. We already rebuilt topology, installed the topology validation hot fix and we were on SP2 when we found out about this issue. Installing SP3 didn�??t seem to fix the issue.
Here is a screen capture of an area where you can reproduce the 109 error. This was reproducible on a file geodatabase too. On the AOI layer, query for AOI = '96106' and use "Validate Topology in Specified Area" inside 96106. You can also reproduce this error on AOI = '50109' by validating the upper left hand corner of this AOI.