I'm still getting it even after upgrading to the latest version:
Q3 2013 Internal Build (2013.3.1004.2)
'when I select "use explicitly typed local variable declaration" on the next line, it wrongfully infers that it should be an object
response = proof()
I'm running VS 2010 10.0.40219.1 SP1Rel if that makes a difference, though I've confirmed that the problem also exists in VS 2012 (I have both installed).
I also verified that this DOES work with C# on my machine... But unfortunately the project that I'm currently working on is in VB so that knowledge grants me little solace.