Recently we came across the above problem. After digging in for about
1 day we found one solution which I will like to share.

This error comes when you are using rails with flex and svn as
repository. in this case try to recreate html-template thru flex or
delete html-template from your machine and copy this from some other
machine(where the application is working) and then try to recreate
this folder.

we solved it thru this only.

We are looking for any other workaround of this . if anybody knows
please let me know.

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