Workspace Disabled and No Commands Available in Source Control Explorer

One of the developers in my project had a problem today when she wanted to sync files to her local machine and work there instead. She installed the TFS Client on her machine, configured server name etc. and then started Source Code Explorer. To our surprise she could not select a Workspace as the drow-down list was disabled and when show right-clicked on a node in the source tree "No Command Available" was shown.

After having restarted both Visual Studio and the machine without any change in status we realized that there was something wrong. However, a quick search on the web gave us the answer: TFS was not selected as the source-control plug-in.

The answer to our problem can be found in Grant Holliday's blog, specifically in his post https://www.holliday.com.au/blog/tfs-source-control-no-commands-available.html