This kind of error usually appears when you use an HSM or a token with a wrong PKCS#11 dll. i.e. you attached NCryptoki to a PKCS#11 dll that is not compliant with the HSM/Token in the selected slot. This is why you got TOKEN_NOT_RECOGNIZED.
Consider that NCryptoki always forward the errors coming from the underlying PKCS#11. This means that TOKEN_NOT_RECOGNIZED comes from OCSCryptoki.dll.