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I worked-around the problem by blowing away my workspace and starting from scratch. Very upset that I had to do that as it took a long time to re-create the workspace. If this is a known issue and there's a better solution, please let me know.
I believe that you've encountered a bug in the router, where it marks a location as used, even if it isn't.
If you've already recreated the worksheet, then you should be okay.
We still cannot reproduce this bug on demand... it is a result of much editing, moving, copy, paste, and at some point, the problem occurs.
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