DPR-ERR-2077 The request failed because the associated report service process is unavailable

Symptom
DPR-ERR-2077 The request failed because the associated report service process is unavailable.

Problem
Running a report returns error DPR-ERR-2077

Cause
Report includes a graph using a query which has the "Processing" set to 'Database Only'.

Solution
In Report Studio, for any queries that are used by a graph, make sure Processing is set to Default or Limited Local.