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11 August 2017 Reply
For me, the error still occured after enabling Developer Mode on phone. Later found out that a service named 'Windows Phone IP over USB Transport (IpOverUsbSvc)' from services.msc has to be enabled to deploy app to phone.
Hope anyone will find it useful.
Thanks for your comment. I wasn't aware of this service (although I just confirmed it's present and running on my desktop), so I'll keep your tip in mind.