RTL Simulation fails with: couldn't execute ip-setup-simulation: invalid argument

Hello,

I am using Quartus Prime Pro Edition 25.3.1 on Windows 10/11.

RTL simulation fails immediately with the following error:

Error: Failed to run ip-setup-simulation: couldn't execute "ip-setup-simulation": invalid argument

Error: Simulation flow failed

Error(23031): Evaluation of Tcl script

c:/altera_pro/25.3.1/quartus/common/tcl/internal/nativelink/qnativesim.tcl unsuccessful

Additional stack trace:

Simulation TCL script failed with errorCode: 1

(procedure "iputf_call_script_gen" line 1)

invoked from within

"iputf_call_script_gen $spd_file_list"

I already checked the following:

- Same error occurs for all projects

- Same error occurs in Quartus Pro 25.1 and 25.3.1

- Same error occurs after deleting db/, incremental_db/, simulation/ folders

- PATH conflict removed (only one vsim exists in PATH)

- `vsim -version` shows:

"Questa Altera FPGA Edition-64 vsim 2025.2 Simulator"

- `where vsim` returns only:

C:\altera_pro\25.3.1\questa_fe\win64\vsim.exe

- `Generate Simulator Setup Script for IP` also fails

- IP regenerate fails with:

"Failed to retrieve Quartus project IP search paths"

I also noticed that Quartus reports:

"Questa Altera FPGA Edition simulator is not supported for simulation library compilation."

Questions:

1. Is Questa Altera FPGA Edition (questa_fe) unsupported for Quartus Pro 25.x NativeLink RTL simulation?

2. Is this a known issue with ip-setup-simulation or qnativesim.tcl?

3. Does Quartus Pro require Questa Intel FPGA Edition/full Questa instead of questa_fe?

4. Is there a workaround besides manually running Questa simulation scripts?

Thank you.