I have a Studio V7 with a ICE Mk II and mega2560 with a squid cable running fine for years on win 10.
I bought a second new smaller AT-ATMEL-ICE. I disconnected the 10 pin female IDC with squid and moved it to the new small ICE adapter board, and pointed Studio/project/tools to it.
Both MK II and ICE are to used with the JTAG interface for advanced debug over an ISP interface.
The new ICE failed to work !!!
Studio gave message "Failed to launch program", "Error: Target power not connected. Debugger command setParameter failed".
The ICE showed it had power(center red LED on) and the target had power (left Green LED on). obviously the squid was connected properly.
A double check of the squid (unchanged for years) showed pin 4 VTG was connected to VCC as required for Mega2560. VCC measured by voltmeter showed 4.97 V close enough to 5.00V !
If you have this problem, double check VGT like I did. These 3 observation are in direct conflict with the printed Studio V7 error message, which is miss leading as to fault. VTG is used by ICE to program the target micro at it's required proper voltage by ICE.
I first removed Visual Micro extension from Studio 7.. not certain this was necessity but it was installed after Mk II and before ICE... it is perhaps too conservative.
Next you MUST unplug all Atmel manufactured devices form USB to win 10 PC. This was JTAG-Mk II ICE and Atmel-ICE. MOST IMPORTANT STEP. during the following StudioV7 re install, if anything Atmel is USB connected to PC, the required driver will not be installed properly Uutomatically.
Use Win 10 / Settings / Apps and uninstall all Atmel Apps, yes all of them
Restart win 10
Be sure all Atmel ICE(s) are unplugged from USB ports... so important !!
Go to Atmel web and down load Studio V7 and install it.
Run Studio 7.
My ATMEL-ICE was just purchased by me, even so the date of manufacture was a year ago (bought from element14).
A window popped up and said "updating ICE firmware", wow I felt progress! the driver was found because the PC was talking to the ICE.
I opened the solution that I was working with old Mk II with the new ICE attached and it worked... / Debug / "Start_Debug_and_Break" and executed it. It worked
The ATATMEL-ICE manual says to look at windows device manager (File Explorer then "This PC".. right click...Device Manager... Human Interface Devices .. and should see the Atmel device listed in HID.. this did not happen for me.. but if you count the number of HID device in the list, one more will appear and then disappear as you USB connect and then disconnect to PC the ATMEL ICE.
I spent a day of time searching for a solution, as well as calls to tech support at Newark.. I hope this helps someone with the Atmel Studio V7 error message unrelated to the real issue !