Problem
Test SQLServer Instance [tst-sqls-03] > Database [Bad] > Database Diagrams > Install Diagram Support > Error Number: 15517 "Cannot execute as the database principal because the principal "dbo" does not exist , this type of principal cannot be impersonated , or you do not have permission.
This error is indeed a token of what happens when there is a mismatch between the database owner according to sys.databases and who is the database owner according to the row for the principal dbo in sys.database_principals.
And the remedy is is to change the database owner to the desired owner:
ALTER AUTHORIZATION ON DATABASE::[Bad] TO DesiredOwner
As for who should own a database, some people in this thread have suggested sa. I think this is bad practice, because this can lead to security issues (if you make other violations of good practice). My preference is that the database owner should be an SQL login that exists soley to own the database in question, and which has been granted no other permissions. But I leave to you to decide.
In any case, there is no other solution to solve your problem than changing the database ownership.