Shipment is not created during receiving

Purchase shipment is not created during receiving. In demo-stable it is working fine so it breaks in the trunk.

Here are the steps to regenerate:

1. Create the Purchase Order.
2. Approve the Purchase Order.
3. Click on the Receive button in Action section on the order view screen.
4. The user navigated to receive screen and getting error.

Expected result: User navigated to receive screen and Purchase shipment should be visible on the Receive screen.