For others, my problem had to do with this line.
It was not working properly as in my startup file I was not running this line:
After that things worked just fine...almost. I am left with a toolbar that I not displaying correctly; it looks like a mobile version and is stacked using only text and no icons. I've attached a picture. Also, Fiddler shows this error:
Name Protocol Method Result Content type Received Time Initiator
http://localhost:7430/api/reports/resources/styles/telerikReportViewer-css HTTP GET 404 0 B 53.82 ms link
How do I correct it and will this fix my formatting? I think it probably will.