Looking at your screenshot it seems the original file is in the Debug binaries folder of your application.
Try to move the file in the project folder and retry (of course you have to re-add the new file location to your deploy options).
No that did not work. I removed the old instance of the file from the deploy manager and did a rebuild. I moved the tags.txt file to my project directory and then re-added it to the deploy manager. Once again, when the file is added, the remote path says ".\". I tried it with that path and got my original results and error. I then changed the remote path to "assets\files", and still get the exact same results and error
Sorry, Andrea, that did work. If I added the file to the projects folder and change the remote path from the default ".\" to "assets\internal", it works!
The binaries folder may be cleaned up at each build, deleting your original file just before trying to deploy it to the device.