Embedded Data URIs Cause LESS compile error

[peteot]

I updated to Web Essentials 2012 v3.7 today and my LESS would no longer compile. I finally pinpointed the problem. If I remove data URIs for image references, it now compiles.

These data URIs were originally inserted using the Web Essentials "Embed as base64 DataURI". I tried using this feature again and it still fails to compile.

I haven't seen the issue until updating to WE 2012 3.7.