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I think your mixing data types of your output from the calculation and incorrectly trying to find the difference between two dates...You need to use the DateDiff() function to find the difference between the 2 dates. If you want the Integer and String output mixed, then you need to convert the difference of the dates to a string using the STR() function:
IF [Case Status] = 'Open' THEN STR(DateDiff('day', [Last Modified Date], Today()))
ELSE "Closed Case"
If that's what you want - that should get you there...