Everytime I update my entity model (by right-clicking on the .edmx file and selecting 'update model from database') it creates a new model.tt file (which winds up being named model1.tt, etc) which then generates this error.
I then delete model1.tt to remedy it.. However..
How do I keep this from happening? is there a better way to update the model?
See this article on including multiple .edmx files and see if this helps resolve your issue:
http://msdn.microsoft.com/en-us/library/cc982041.aspx
Hope this helps!