TF203035–Create Branch from Label

For testing and demonstrations I have a basic installation of TFS2010 installed on my Windows 7 boot. Whist demonstrating the branching within TFS to a customer I came across an error when attempting to branch a folder by label:

Branching by label is something I do frequently in our production TFS environment so I was confident the issue had to be with my local TFS instance. After a quick search online one of the many suggestions relating to this error was a mismatch between versions of TFS 2010 and Visual Studio 2010. After checking the version of both products I found I had patched Visual Studio 2010 to service pack 1, however as my TFS installation was only for testing I had not ensured that the patch level was up to date.

Once I installed service pack 1 for TFS2010 I was able to branch a folder by a label successfully.