Rasheed,
I also would get the fail to draw error when having arcmap open for a long time on my windows 10 machine (running 10.3 and 10.3.1). I just kind of ignored it, closed and re-opened arcmap and things were back to normal.
I have the exact same issue as you describe above. Did you ever find a solution to this?
Does this problem only occur for data stored in file gdbs?
Yes all of our data is in a file gdb.
Matthew, did this error message ever really stop you from your work too much? Or did you have to fully close and re-open ArcMap?
Maybe moving to ArcGIS Pro is a work-able solution?
For us: yes it stops work often. A full close and restart of ArcMap is needed. Moving to Pro is not a solution. We use Pro, but ArcMap is still the primary and will be for at least a few more years.