When I try to add DataSets to any RDLC report within asp.net Project, Visual Studio stop work and restart.
Wanted to post this in case someone else had the same issue. I had the same crash in VS2017 when trying to add or even see the properties of the report dataset. After trying several things, I removed a reference I had for Telerik.Web.UI. Once I did that it worked fine.
Apart from reference issue, my case was different.
It was 3rd party extension named resharper of jetbrain which cause delayed of rdlc report designer to load, in the meantime visual studio get hanged and get restarted. For your case if not resharper, may be another extension that may delayed the report designer to load which in turn may hang or crash visual studio.
Though seems little bit peculiar but it helped me, hope this helps someone.
I have tried adding DataSet using VS 2012 and 2015, both attempts produced an error same as yours. This only happens to one of my VS projects.
Took me several hours to find out that the cause is an unused but referenced dll. After removing that from my project references, I can finally add DataSets successfully.