Please refer to This answer by the Mathworks support team.
License error code 16 means MLM daemon path is invalid.
Check your $MPS_INSTALL/etc/license.dat (if Windows, $MPS_INSTALL\etc\license.dat) file and DAEMON MLM path is correct. If you're using Linux, this path would be
DAEMON MLM $MPS_INSTALL/etc/glnxa64/mlm
In case of Windows, this path should be
DAEMON MLM $MPS_INSTALL\etc\win64\mlm.exe