Report preview cannot find Data source folder

Question

When I try to preview report in Visual Studio 2012 Designer I am getting an error:

An error occurred during local report processing.
An unexpected error occurred in Report Processing.
An error occurred during local report processing.
Error in the application.

Could not find a part of the path '...\bin\Debug\Data Sources\SomeDatasource.rds'.

Couple remarks:

1. There is a valid data source in project.
2. When I build project it creates flat (no folders) structure of reports, datasets and datasources in bin\Debug folder
3. Data Source folder (along with other folders) is defined for deployment only
4. When I removed folders in deployment settings, it is still not working
5. It might be related to installing the latest SSDT (11.1.40403.0) yesterday... however right after installing everything worked
6. Everything worked in this configuration so far...

Answer 1

1) open the report definition's xml by right click -> view code

2) browse to Report -> DataSources -> DataSourceReference

3) replace "/Data Sources/MyDS" with "MyDS"

This clearly should have been patched by now!