I recently installed Visual Studio 2010 and SQL Server 2012 on a Windows Server 2008 R2 machine - (including all updates/Service Packs).
When attempting to work on a
For me, the error arises whenever I try creating a new database. So after unsuccessfully attempting all methods advised, I bypassed the error by clicking on "Add connection" and putting my server name in the dialog box. After adding the non-existent database name, it notifies that it can't find such database and asks whether to create it. Voila! Database created (even though server version is supposedly unsupported).