Seems to be related to the ART.vcxproj - introduced after commit 141.
The ToolsVersion is "4.0" and has no PlatformToolset value
Although Visual Studio 2010 is supposed to use ToolsVersion 4.0, the executable produced encounters the attached error when reading from a file. Updating the tools version to 12.0 and PlatformToolset to v120 gets rid of this error - but this should be tested on a computer that has .NETFramework 4.0 alone for backward compatibility in Visual Studio 2010
Diff:
Commit r144 fixes this