Failure to update Service Reference

The problem is that when i try to update the service reference i get the following error.

The checkout was cancelled by the user.(0x80004004)

I can't seem to do anything that will solve it since if i do try to do something then i have problem with pending changes.

When you Update Service References, changes are made to files in ProjectDirectory/Service References/Your Service Namespace.

These files aren't shown in the solution explorer, but they should be in source control so other team members don't have to manually update references.

Try checking out these files and updating again.