To fix this error, double-click on the 'local.testsettings' file in your solution
Click on the 'Deployment' tab on the left pane, and click on the 'Enable Deployment' tick box
The tests should run as expected now
After numerous years of thinking about it, I finally decided to start blogging the errors I documented in scribbles here and there over the years as and when I have the time, in the hope that they'll help some new 'BizTalk-er' to resolve their 'error-under-pressure' scenarios faster