Duplicate data source type &1 in different folders

What causes this issue?

The same data source type exists in different folders of the same data
source class. This causes inconsistency issues: For example, folders
that are assigned the same data source type will have different statuses
or error counts.

System Response

The system issues an error message and will not allow you to continue with this transaction until the error is resolved.

How to fix this error?

Delete duplicate data source type.

Procedure for System Administrators

Error message extract from SAP system. Copyright SAP SE.