The "FILE SERVER INITIALIZATION FAILED" error occurs when you try and perform a function in CA Bundl but, the CA LSERV task that services the CA Bundl VSAM files is not active.
The CA LSERV started task is the STC that executes PGM=LDMMAIN. This task control all I/O into and out of the CA Bundl VSAM files.
The typical resolution when this error is received when attempting to perform a function in CA Bundl is to START the CA LSERV task so that access to the CA Bundl files is available.
If you have confirmed that the CA LSERV task IS active but you are still receiving the error, check the SSN$ and DDN$ value specifications associated to the CA Bundl function you are trying to perform. The value for the SSN$ specification MUST match the 4 character active CA LSERV tasks SSNAME=nnnn value. And the value for the DDN$ specification must match the 4 character prefix of the CA Bundl VSAM files you are trying to access.