I hit this same issue when upgrading an old (v0.11.x) Vue.js app. Vue.js 2.x introduces compiled (render-function) templates. Additionally, these are the new default.
Here's more info from the 2.x docs:
http://vuejs.org/guide/installation.html#Standalone-vs-Runtime-only-Build
In my case, I was using browserify and partialify to include the templates (as strings), so there was no pre-compilation to render function happening.
To fix this, I used aliasify to make sure the vue requirement was fulfilled with the "Standalone" copy of Vue.js rather than the "Runtime-only" version.
I did the following:
npm install --save-dev aliasify
edited the package.json to include this code:
"aliasify": {
"aliases": {
"vue": "vue/dist/vue.js"
}
}
added -t aliasify to my browserify command, which now reads:
browserify -e src/main.js -t aliasify -t partialify -o build/bundle.js
You can do this with webpack also--and there's info in the Vue.js docs for that.
I hope that helps!
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