To reproduce: 
1. Use the following code snippet:
public class ViewModel:INotifyPropertyChanged
{
    public ViewModel()
    {
    }

    private bool _isShown;

    public bool IsShown
    {
        get
        {
            return this._isShown;
        }
        set
        {
            this._isShown = value;
            OnPropertyChanged("IsShown");
        }
    }

    public event PropertyChangedEventHandler PropertyChanged;

    protected void OnPropertyChanged(string propertyName)
    {
        PropertyChangedEventHandler handler = PropertyChanged;
        if (handler != null)
            handler(this, new PropertyChangedEventArgs(propertyName));
    }
}

2. Add a MS Panel and a RadPanel to the form.
3. Add Panel.DataBindings at design time for its Visible property to the ViewModel.IsShown property.
4. When you run the application, the MS Panel is not visible. However, if you remove the RadPanel it is shown. Please refer to the attached sample video illustrtaing better the performed steps.