Hello David,
Thank you for the details provided. Please note that a data mart reset will not delete the report designs from inside of the Report Designer; however, what part of the data mart reset will do is to remove the list of previously generated reports from the D365 database and then re-synchronize this list from the Financial Reporting database. Since you do not see any reports listed in D365, something is preventing the synchronization process from happening. Also, the error you got is because the list of FR users is also not synchronized from D365. The error is not related to the ClickOnce which is for running Report Designer. There are several areas you can look for more information:
1. The data mart log -- in the Financial Reporting database, review the contents of view Scheduling.Message for synch errors
2. The Windows Event Viewer -- The custom logs are under Applications and Services Logs | Microsoft | Dynamics. There are several "MR-" logs such as "MR-Logger".
3. Also verify that the Process Service is running. This is found in the list of Windows services with the name "Management Reporter 2012 Process Service".
If you need further help, you may consider opening a support case for limited support for your local VM, or if you do not wish to take the time to troubleshoot, you can re-deploy your local VM.
Thanks!