Hello Prasad,
this is an IOS error
error message decoder provides the following feedback
1. %ALIGN-1-FATAL: [chars]
An alignment error has occurred. Alignment errors are caused by misaligned reads and writes. For example, a two-byte read of a memory address that is not a multiple of two bytes is an alignment error. Alignment errors are caused by internal software failures. The system will be reloaded, often with a bus error.
Recommended Action: This message is caused by a software failure. To take advantage of recent fixes, upgrade your system to the latest Cisco IOS software release in your release train. If this message recurs, copy the error message text exactly as it appears on the console or in the system log, enter the show log, show alignment and show tech-support commands, contact your Cisco technical support representative, and provide the representative with the gathered information.
you are using dynamips so this is an issue on a real device.
I cannot say if the two facts, erasing configuration and the error, are correlated.
You may want to build a new virtual router from stratch.
Hope to help
Giuseppe
