Scenario:
Time and Attendance is the seat that is assigned to all the employees in the organization using Web Timesheet. There are few employees who has the permission type called Exempt- Time and Time off only. All the employees in this organization have the Locked In and Out timesheet setup and when ever the user belonging to the permission type Exempt- Time and Time off only tries to Punch In, there is an error that says Task is not selected. Use manage favorites. All other users who do not have this permission type are able to Punch In and Punch Out.

Resolution:
In the permission type Exempt- Time and Time off only, it was found that in the Timesheet permission, Allow time to be entered permission was unchecked. This did not allow the timesheet to enter the time that is applicable when punched in.