Hmmm, it appears that the type provider is rather stubborn and inflexible in that it requires a true "wsdlschema" doc when using the LocalSchemaFile
option. A wsdlschema document can contain multiple .wsdl and .xsd files within it, wrapped in some XML to keep them separate. I'm guessing this is some kind of standard thing in the Microsoft toolchain, but perhaps others (e.g. Amazon) don't expose stuff like this.
The first thing the TP attempts to do is unpack the wsdlschema file into its separate parts, and sadly it does the wrong thing if in fact there is no unpacking to be done. Then, when it tries to point svcutil.exe at the unpacked schema files to do the codegen, this dies with the error message you are seeing.
Workaround: Add the expected bits of XML into your file, and it will work.
<?xml version="1.0" encoding="utf-8"?>
<ServiceMetadataFiles>
<ServiceMetadataFile name="ec2.wsdl">
[body of your WSDL goes here]
</ServiceMetadataFile>
</ServiceMetadataFiles>