The template itself is usually located in the \ Program Files [(x86)] \ Microsoft Visual Studio 10.0 \ Common7 \ ide \ itemtemplates \ CSharp \ Data \ 1033 folder in a zipfile called AdoNetEntityDataModelCSharp.zip. There is also a copy in \ Program Files (x86) \ Microsoft Visual Studio 10.0 \ Common7 \ IDE \ ItemTemplatesCache \ CSharp \ Data \ 1033, where VS reads it.
Does this file exist in both places? If not, copy it from another machine. If it exists, but does not appear in VS, something else is wrong. In this case, try to run the devenv.exe file once with the / resetskippkgs command line switch.
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