Error -17691, kVTSessionMalfunctionErr, is a low-level error from the macOS VideoToolbox framework. All it tells us is something went wrong (which we already know).
There is probably more data in your macOS log, maybe a crash file. If you run the macOS Console app it gives easy access to those. To launch console just do CMD+spacebar and type "console."
Then, in the left sidebar, click on crash reports. If there is any FCP crash shown, right-click on that to reveal the .ips file. Send me that file here: https://we.tl/r-bAQQU51kIi
Immediately after one of these problems, I would also like to see a two-minute excerpt of your macOS system log. You can produce that with this command in terminal. To run terminal just do CMD+spacebar and type "terminal."
sudo log show --info --debug --style syslog --last 2m > ~/Documents/LogShow2m.txt
It will prompt for your password, so enter that. The file will be in your /Documents folder. Send me that file also to the above URL. Make sure you issue the command immediately after the problem (ie within about 30 seconds).
As Ben said, it might be related to a corrupt media file. As he said, in FCP click on the library in the left sidebar. Then do File > Delete Generated Library Files > Delete Render Files > All.
If you have not rebooted your machine in a while, go ahead and do that.
If it still has problems, shut down FCP and launch it while holding the OPT and CMD keys. That will delete FCP preferences, which often helps with mysterious problems. You will have to re-enter a few preferences in FCP > Settings, but that is quick and easy.