I'm getting this error when I try to connect my emulator to the internet (on first run)
I even tried uninstalling/reinstalling Hyper-V, performing a repair install of the Windows phone SDK but it didn't help.
I tried creating manually the external virtual switch but it also fails with the same error
I have had the same issue with my emulator in last year.
It was solved by the following points:
P.S. My advice, don't use emulator, it's buggy and don't completely emulate device. The best way is the use real device to debug!
Open Hyper-V Manger. On left side go to Virtual Switch Manager then Create Virtual Switch. Name your Switch then select External network and choose your Ethernet driver. Click Apply.
On the middle you should see Emulator WVGA 512MB... click on that then on right side you should see a "Settings..." under "Connect..." click on that.
Go down to Windows Phone Emulator external and click on it then select the Virtual Switch then select the switch you created.
When lunching the Emulator again and it will ask you to connect to internet click no and you should have internet.
I solved it by going to Device Manager, finding the wireless network card I'm using and uninstalling it. Then scan for new hardware changes so that Windows reinstalls the device.
After that I was able to launch the emulator and it created the network switch (internal) on its own and successfully connected to the network
