You should get that error when you don't have enough fund to increase the fee to the amount you want.
Just to note, you only get this error if you have chosen the "Preserve payment" option from the drop down box, since Electrum will not reduce the final output amounts in order to contribute more to the fee. If you don't have an additional output in your wallet to contribute more fees to your RBF transaction, then you can change the drop down box to "Decrease payment" and it will reduce your outputs and increase your fee using the same inputs.