Hi!
The problem is not coming from TestStand 3.5 but from the your NI License Server.
The NI License Server on your PC is searching the license for TestStand from a Volume License Server in a server named "bitools.lvld.agilent.com"
Are you using the Volume License Server? Do you take the license for NI Software locally or on a server?
Check the NI License Server (Start ->Programs->National Instruments-> NI License Manager) and under "Options -> Settings" check the first checkbox.
In your case the "bitools.lvld.agilent.com" is probably checked. Set the right name for your license server (if you are using on) or uncheck the box if you are using local licenses.
Once this problem is resolved, the launch time of TS will speed up and no error will appear
Best regards
Ken