TF400030 The local data store is currently in use

I’ve initiated get latest version operation for local workspace using command line utility tf.exe

It was created as local workspace by default but there were a lot of files under source control.

tf.exe hanged up because of local workspaces limitations and has broken some logical workspace structure. It was not possible to view/update/remove this broken workspace. SourceControlExplorer and tf.exe hang up when any operation was started. Task Manager has shown hig CPU usage and memory consumption

VS shows the error

TF400030: The local data store is currently in use by another operation. Please wait and then try your operation again. If this error persists, restart the application.

I’ve tried to clear the TFS cache folder (appdata\local\Microsoft\Team Foundation\7.0\Cache) but no luck

Solution is to delete the $tf folder that is located in the root of the workspace folder. This helped me. I converted local workspace to the server one immediately