I think the issue is directly related to the status bar message that you're seeing: "cannot refresh design of the database "Name" - "design tempate is not specified"
Open Database properties, then the 4th (Design) tab. Half way down the disalog box there is a section entitled :'Inheritance'.
In order for 'Design Refresh' to be successful, the box 'Inherit design from master template' should be checked, and the template name box filled in.
The template name, then, must match the template name specified on the actual template.
My guess is that either the template name isn't specified on the database.