What version of TestComplete are you running? Your versions of TC and TE have to match exactly.
I've checked,
TestComplete version is "14.0.308.7" and TestExecute version in my agent machine is "14.0.308.11", More or less it is same version.
Will it affect TestExecute launch via TeamCity?
They need to match exactly.
Does this test run with TE on the same test machine if you just use the command line and not Team City?
What is the exact error message you get when it fails in Team City?
Yes, when I execute the command locally using the command prompt it is working fine "As expected, TestExecute is launched and project started running".
Mentioned the command that is used to launch TestExecute and execute the project below,
"Absolute path to TestExecute.exe" "Absolute Project path to .pjs file" /run /exit /silent
When I try to execute the above mentioned code in TeamCity "Command Line Build Step" it is throwing and error like "connect: no error" in that particular build step.
I've attached the screenshot of the output error below,
