Following the below steps should resolve the issue.
. Create a new project.
. Place the RR pairs in Project/Data folder or in another folder inside Project/Data folder.
. Try the VS recording with Request /Response pairs in the current project. Give the default VSI & VSM locations (VSI should be in Project/VirtualServices/Images & VSM should be in Project/VirtualServices folders)during recording and select the RR pair folder.
. Finish the recording and the error shouldn't be thrown. VSI and VSM should be created and saved in the default folders ((VSI should be in Project/VirtualServices/Images & VSM should be in Project/VirtualServices folders).