The attached error message indicates that the project references an older version of Telerik Reporting and cannot process a report created with a newer version of Standalone designer.
Report with schema http://schemas.telerik.com/reporting/2012/4.0 can be used with version
not later than R2 2016 - Upgrade Path
You need to upgrade the project to the latest version installed on your machine using Upgrade Wizard
in Visual Studio. After that, rebuild the project and test running again.
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