From the error the FSC is not able to download the model.xml from model dataset. Either the volume is not accessible(offline/Access issue) or dataset doesnt hold a named reference for corresponding model.xml dataset.
I prefer to check the following.
1. Check FSC service is up and running or not.
2. Login with infodba and try to create a dataset(any type), upload and download a reference file
3. Launch TC and check model.xml dataset and check for the named reference size and if available try to download the same.
4. If dataset reference is missing, upload the same file from %TC_DATA%\model\model.xml.
With these steps you should be able to pass the step.