Hi Larry,
I am sorry you are facing difficulties using the VS extension.
I was able to reproduce the behaviour at my end and have logged an item, so this could be fixed. You can follow the status here as it will update once the internal item is planned and development has started.
The workaround for the issue is to manually convert the project to a Telerik one. You can use the steps in this article as a guide.
I have also updated your Telerik points balance for turning our attention to this problem.
In case you have any other questions do not hesitate to get back to us.
Regards,
Nikola
Progress Telerik