The issue is that the * is getting interpreted by your shell and is expanding to a file named TEST_FILE that happens to be in your current working directory, so you’re telling find to execute the command named TEST_FILE which doesn’t exist. I’m not sure what you’re trying to accomplish with that *, you should just remove it.
Furthermore, you should use the idiom -exec program '{}' \+ instead of -exec program '{}' \; so that find doesn’t fork a new process for each file. With ;, a new process is forked for each file, whereas with +, it only forks one process and passes all of the files on a single command line, which for simple programs like chmod is much more efficient.
Lastly, chmod can do recursive changes on its own with the -R flag, so unless you need to search for specific files, just do this:
chmod -R 777 /Users/Test/Desktop/PATH