Care this tool is only tested against shapefile(input and output) and folder(as workspace-not gdb etc).
Have u chacked the name of ur point shapefile(or name of output shapefile, folder etc. ) u r tring to connect (e.g name is "offset-line.shp") where hyphen is not allowed.
So far i see u have invalid word in the path i.e. \ESRI-master in File "C:\Prediction_Path_Model\MODEL\ESRI-master\Toolbox.tbx#ConnectPoints.py
where hyphen is not allowed it will be \ESRI_master or others which is valid