Error on project creation & Alloy is not an option when creating a new project

When the customer tries to create a new project, the Alloy option is missing from the template selection area. If they close the window and try again, they will have the option to select Alloy. When trying to create a project, they are greeted with a creation error.

We were unable to repro this in house, but the customer can consistently show it on webEx.

Steps to reproduce:
1. Open Studio
2. go to File->New->Mobile App Project
3. Witness that there is no option to select Alloy
4. Close the "Create project" window
5. Again, go to File->New->Mobile App Project
6. Witness that you can now select Alloy
7. Try to create an Alloy project
8. Witness the creation error in the screenshot

Additional Notes:
The customer was having trouble enabling services. We discovered that they were trying to log into dashboard with the wrong password and thought Studio may have the wrong password. We logged him out and back in with the "new", correct password. He then started getting these problems on project creation.