Error in Team Foundation Server: This item cannot be added because its destination path is cloaked.

This item cannot be added because its destination path is cloaked.

if you have stuck with this error while adding any folders/files to TFS, Then here is the solution
nicely explained by Blog Author: Mike Christian.

http://thecurlybrace.blogspot.in/2011/02/fix-tfs-cloaked-path-problem.html

Snap Shot from his Post:

How to Fix the Cloaked Path Problem

As I mentioned above, a cloaked path simply means the parent directory is not recursively mapping folders.  We want to add a child folder map.  These two conditions are mutually exclusive.  To resolve the issue, simply change the parent map to be recursive: 

1. In the Source Control Explorer window, right click the parent node -- the context menu appears
2. Click the Remove Mapping... option in the context menu -- the Remove Mapping dialog appears
3. Check the box labeled, Recursive
4. Click the Change button -- a prompt appears, stating, "Newly mapped items will not be downloaded until you execute a get. Do you want to get $/[PARENT PATH] now?", where "[PARENT PATH]' is the path of the parent node
5. Click the No button -- the prompt and Remove Mapping windows disappear, and then the Get window appears
6. CAUTION: Use your best judgement here!  I decided to click the Cancel button in the Get progress window, to prevent mapping child objects

After changing the mapping of the parent to recursive, adding items should function normally.

Thank you so much Mike. for such a nice post.

Regards,

Md. Jawed