Looks like you've somehow created an infinite list loop...
This error is encountered when the list you're editing is being used as a criteria inside a different list that's being used as the criteria of the list you're editing.
For example, say you are editing List A with the following criterion:
- Contact | is a member of | List B
Then you have List B where the criterion is:
- Contact | is a member of | List A
Essentially, neither list can ever fully process, because it requires the processing of itself. To resolve this, edit the criteria of one of the lists to not rely on the other list.