Since version 2014.1.226 when adding a Telerik item template (e.g. RadForm) inside a project folder, VS extensions crash with the following error:

System.NullReferenceException: Object reference not set to an instance of an object.
    at Telerik.VSX.Internal.ProjectManagement.ProjectFileLocator.GetProjectItemForPath(String relativePath)
    at Telerik.VSX.Internal.ProjectManagement.ProjectItemWrap.ContainedInProject(IProjectWrap porjectWrap)
    at Telerik.WinControls.VSX.TemplateProcessing.WFScenarioManager.Launch(IServiceProvider serviceProvider, String itemName, String scenarioPath, String scenarioName)
    at Telerik.WinControls.VSPackage.VSItemTemplateWizard.LaunchScenarioManager(ServiceProvider serviceProvider, Dictionary`2 replacementsDictionary)
    at Telerik.VSX.VSPackage.ItemTemplateWizardBase.RunStarted(Object automationObject, Dictionary`2 replacementsDictionary, WizardRunKind runKind, Object[] customParams)
    at Telerik.VSX.VSPackage.WizardBase.<>c__DisplayClass5.<Microsoft.VisualStudio.TemplateWizard.IWizard.RunStarted>b__4()
    at Telerik.VSX.VSPackage.WizardBase.CatchExceptionAndSendReport(Action action)