The "Unexpected Internal Error has occurred" error usually occurs due when there are overwhelming demands on the megaservers, but may also occur if you have a faulty file in your game.
If logging out and restarting the game does not resolve the issue, you can follow the troubleshooting steps below:
Close and Restart ESO and the Launcher
Completely close out and restart The Elder Scrolls Online game and the ESO Launcher and try again.
Check ESO Service Alerts
Verify the servers are not undergoing scheduled maintenance here. If the ESO server or platform is undergoing maintenance or experiencing an outage, you will not be able to connect until it is resolved.
Switch Between Megaservers
If you continue to receive the "Unexpected error" message, you can try changing your Megaserver.
To do this, navigate to the in-game login screen by launching The Elder Scrolls Online from the ESO Launcher. At the login screen, select Server (underneath the Play button), select the server you wish to connect to (NA or EU), and then select Accept. It may take several minutes for your server selection to update. After choosing your server, wait until the Announcements reflects your selection before logging into the game.
Repair your Launcher
1. Rename the "ProgramData" folder to "ProgramDataBackup" located in C:\Program Files (x86)\Zenimax Online\Launcher\ and repair your launcher
2. Open your Launcher and Go to "Game Options" and select "Repair"