"Error while updating block height" message appears when trying to modify the block size
This error can occur if inside SOLIDWORKS, the block dimensions are set to "driven state" for the block profile sketch. Due to some SOLIDWORKS setting the block profile sketch gets driven dimension.
To resolve the issue in the new block, make sure bellow options are un-checked.
To resolve the issue on existing block, Edit the block profile sketch, un-check "Driven" option and set it to "Mark as Drawing" using the context menu. Also delete unnecessary geometric constrain if profile sketch gets over defined.