I\'ve seen several different questions relating to this error but none seem to be quite what I\'m experiencing. I just followed a simple, one project tutorial on CodeProject
Building the application and working in editor mode are two different activities for the editor. The editor has to parse/build the code in states which the code can successfully compile and failure states as well; each time it has to give end results; as if you have compiled and built the application.
moved my MainWindowViewModel into a new folder
Since you moved the location the full build compile will link in the parts necessary to create an application and as you see it works. But for the editor, when it is parsing MainWindowViewModel which was at the top level, it may have a cached version location of the app.config which was at the parent level and not the new level.
Regardless its editor processing heuristics are causing the file not to be found for the current location of the moved file.