In my case, I did not add the required host header to the IIS configuration. After that, Visual Studio stopped complaining.
In IIS7 Manager, right-click on the site and select "edit bindings." Make sure that the URL that you enter in VS is specified and you can display it from the command line (you should answer 127.0.0.1). If you cannot download it, add the URL to your c:\windows\system32\drivers\etc\hosts file.
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