Assertion failed on expression: 'm_Count < ScriptingArguments::MAXARGS' error with Animator.Update

I am in some cases getting following error when calling Animator.Update(0)

Assertion failed on expression: 'm_Count < ScriptingArguments::MAXARGS'
UnityEngine.Animator:Update(Single)
[rest of stack trace]

Which is bit strange, because the same path where the update call is made, works very nicely for most of the time. I've yet been able to reproduce this with only one specific Animator/Animation Controller, so it might be somehow related to configuration of that one, but haven't figured out what would be so different with it. However, I could not find any information of given error from the web and neither can dig deep into it as it seems to happen inside the Unity itself.

Anyone else has bumped into this and has more insight on what it really is about, to point me to right direction on what might be going wrong?