Executing TO_DATE() in the Toad Editor gave error "ORA-01841" in TOAD. (4279354)

If I run a query (F5 or F9) with the TO_DATE() conversion in Toad, I get an

ORA-01841: (full) year must be between -4713 and +9999, and not be 0

For example,
SELECT TO_DATE (T.DATE_OF_BIRTH, 'DD-MON-YYYY') FROM T;

This is an Oracle issue with the year 2000 and not Toad. If you run the following in SQL PLUS you will get the ORA-01841 as well.

CREATE TABLE CUSTOMER.I
(
DATE_OF_BIRTH DATE
)

INSERT INTO I VALUES ('1-jan-00');

SELECT TO_DATE (I.DATE_OF_BIRTH, 'DD-MON-YYYY') FROM I;

Note: ORA-01841 only occurs for the year 2000.
e.g. 1/1/2000
1/1/00
1-jan-2000
1-jan-00
etc.

There is no know solution on the Oracle side that Quest is aware of.