After more testing and reading the thread at AHQ I tried a few other things. None of them worked except playing the game offline. Meaning turning off wifi or disconnecting the computer from the internet.
When I connected my computer back to the internet, and tried to open and then close the launcher it gave me the warning message.
What seems to be happening is the launcher is getting stuck in an upload process that can't be finished. Unless you close out the warning message or close it using Task Manager.
Open Task manager (Ctrl-Shift-Esc) search for a file called Sims3Launcher (32 bit) Right click on it and select End Task.
Tests I've tried:
1. Sims 3 factory Reset
Sims 3 Factory Reset - HowTo:
http://www.carls-sims-4-guide.com/forum/index.php?topic=20732.msg401814#msg4018142. Deleted the Sims3Logs.xml, Sims3LauncherLogFile.log as well as the game cache from the Sims 3 folder.
Delete Game Cache Files (What & Howto)
http://www.carls-sims-4-guide.com/forum/index.php?topic=20732.msg401809#msg4018093. Created a new shortcut to the Sims 3 launcher.
Go to: C:\Program Files (x86)\Origin Games\The Sims 3\Base Game\Game\Bin and on the S3Launcher.exe file, right-click and send to desktop. Depending on where the game is installed, the path might be different.
4. Playing the game offline - opened/closed the launcher a few times.
If none of the above help, you may want to report the issue using this thread at AHQ Sims 3 Forum to see if they have any other suggestions.
Sims 3 Launcher Running in Tray While Playing
https://answers.ea.com/t5/The-Sims-3/Sims-3-launcher-running-in-tray-while-playing/td-p/6993691