It looks like VS templates are not installed correctly.
Please check if the machine and the IDE cover Telerik Reporting System Requirements
. Then download the MSI from your Telerik account
- Downloads - Reporting, and run it with the command from Installation Problems
to create a log file with errors, if any. We will need to review the log file.
On a side note, Web Site type of project does not have design-time support. Reports can be created in a separate ClassLibrary that is referenced by the WebSite project.
Telerik by Progress
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Do you want to know when a feature you care about is added or when a bug fixed?
Telerik Feedback Portal
and vote to affect the priority of the items