Most unusual - got the same identical error this morning using SSMS. Unusual in that last night about 10 PM all was fine. Decided to shut down my desktop an do a cold boot. And dear old Microsoft displayed the message that my computer was being automatically updated with 5 security updates - yes on the desk top I do subscribe to auto updates.

Let the machine shut itself down and then powered it back up, immediately ran SSMS and surprise no problems... seems that one of the updates was to the named-pipes dll to close some sort of security gap.