How to Fix the bug Local processing Exception was unhandled when passing parameter to report rdlc winform?

Set this:

this.reportViewer1.ProcessingMode = 
    Microsoft.Reporting.WinForms.ProcessingMode.Local;

And change this:

this.reportViewer1.LocalReport.ReportEmbeddedResource = "Report1.rdlc" 

to

this.reportViewer1.LocalReport.ReportPath = "Report1.rdlc";

Just in case that this would be the case, I had the same problem after I reorganized my project folders, thus changing the report file path. All I had to do is re-selecting the report in the ReportViewer's Choose Report ComboBox accessible from its upper-right corner.