Solving 'Activate Features' error

Problem 

I was trying to make a new custom ListDefinition that's not based on content type, and when I tried to deploy, it gave the following error:

Error occurred in deployment step 'Activate Features': Cannot complete this action.  line 0 , column 0. 

Solution 

Turns out you have to remove these lines, in the ListDefinition schema file:

<ContentTypes>
  <ContentTypeRef ID="0x01">
    <Folder TargetName="Item" />
  </ContentTypeRef>
  <ContentTypeRef ID="0x0120" />
</ContentTypes>