That parameter can be null (it is when a property is read from an object in the collection bound to the grid directly), it's just that in that case it tries to create a dummy entity to produce the actual properties for the ITypedList implementation, though as the factory is null, it fails. I'll see if I can add code which throws a more meaningfull exception there.
(edit): looking at the code, it's a bug. It should use the instance in the collection if no factory is there, not just use the factory. It now assumes the factory is there if there are instances in the collection. I'll fix this.