While we were at TechEd (talking, by the way, about Visual Studio LightSwitch, twice), the LightSwitch team released a GDR (General Distribution Release, aka update) to "resolve an issue encountered when publishing to SQL Azure"
"This is due to a recent SQL Azure server upgrade which caused the version incompatibility"
So when are they thinking to fix this one ? are they planning to release a hotfix soon ?
The GDR *is* the hotfix. Click on the GDR link above to go to the announcement and from there to the update download page.