error: citation/ bibliography is wrongly placed in index area, please delete the placed citation/ bibliography in index area

I had the same problem, just after the update - immediately after the update.

I wasn't having any citation highlighted, but rather a Prism graph. I took someone's advice and turned on field code by pressing alt+F9. I found this bit of code: "{ ADDIN }" appended to the end of the field code for my embedded graph. Once I deleted that item the document became functional again. I just replicated the same fix in a backup version of the file I had made, it really is just that piece of code.

It looks like there are other pieces of code containing "ADDIN", based on a ctl+f search, one for each of my citations. But this { ADDIN } was the only one that was sitting alone, with nothing else in its curly braces. 

So here are the steps: 

1. Hit ALT+F9
2. Search for ADDIN (I didn't get a result for { ADDIN, only the letters themselves worked)
3. Delete the search result that is { ADDIN } alone
4. Try to refresh your bibliography to see if it's fixed!

I managed to correct the error. Hope it will help others.

Every time I received the window with an error, Word was pointing on a particular piece of text with some citation that has a mistake (too bad it's not highlighted). You need to identify which citation is corrupted and delete it (just copy different parts of your text into a new word document + compile bibliography again, so that way you can eliminate the corrupted citation).