TFS 2010 does not support branching a folder that contains child branches in it, and it will give you this error: “TF203071: The operation cannot be completed because the source folder that you specified contains a branch”.
The cause for this is the new branch visualization features. To work around this, you’ll need to turn the branch back to a regular folder (the underlying branch doesn’t go away):
- Select your child branch
- Go to File –> Source Control –> Branching and Merging –> Convert to Folder
This turns the branch back to the “old-style”, which does not support visualization. But you gain the ability to branch a folder with child branches. Hopefully they will fix this in the next release.