Did see this as well (unfortunately had so many various bugs, can't remember exactly which one this was). Think it might be that it has managed to place all settlements that are needed for regions, but is finding spare white or black pixels on the regions.tga
When we were getting these sort of messages did also find that it sometimes moaned about 'settlements' when problem was actually a port!
Watch out for port pixels that have been landlocked by only having one corner rather than one side joining the sea.
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