An old question, but I came across this yesterday, so I thought that publishing the solution made sense: this error occurs if you select the wrong template in Visual Studio for your dynamic data project. There are 2 templates (actually 4, 2 for sites and 2 for web projects):
- Dynamic data web application
- Web application with dynamic data.
Use 1 with linq-to-sql, use 2 with Entity Framework. If you use the first template with EF, you will get the above error.
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