Resolution:
BE installation was not able to update the designer.tra file (&ltTibco_Designer>/bin).

You have update the designer.tra file manually.
1.)
Add environment BE_HOME
tibco.env.BE_HOME=&ltbe_home>

2.)
add BE classpath settings to tibco.env.CUSTOM_CP_EXT

%BE_HOME%/hotfix/lib%PSP%%BE_HOME%/hotfix/lib/palettes%PSP%%BE_HOME%/hotfix/lib/ext%PSP%%BE_HOME%/lib%PSP%%BE_HOME%/lib/palettes%PSP%%BE_HOME%/lib/ext

3.) add BE palette path to tibco.env.CUSTOM_PALETTE_PATH

%BE_HOME%/hotfix/lib/palettes%PSP%%BE_HOME%/lib/palettes