EntityMalformedException when previewing a node with a term reference field with display mode taxonomy_term_reference_link

The actual error happens here in the taxonomy module

 switch ($display['type']) {
    case 'taxonomy_term_reference_link':
      foreach ($items as $delta => $item) {
        if ($item['tid'] == 'autocreate') {
          $element[$delta] = array(
            '#markup' => check_plain($item['name']),
          );
        }
        else {
          $term = $item['taxonomy_term'];
          $uri = entity_uri('taxonomy_term', $term);
          $element[$delta] = array(
            '#type' => 'link',
            '#title' => $term->name,
            '#href' => $uri['path'],
            '#options' => $uri['options'],
          );
        }
      }
      break;
      ....
  }

Which is triggered by this code in the node module.

  $nodes = array($node->nid => $node);
  field_attach_prepare_view('node', $nodes, 'full');

How to reproduce.

Steps

1. Create a vanilla Drupal installation.
2. Add a term reference field and set the display mode to "Link" (taxonomy_term_reference_link) and make it be displayable in teaser/full display
3. Start creating a node, and add a term in the term reference field.
4. Press "Preview" on the node form.
(The error also happens on node already created and being previewed in edit mode)

Actual result

The "fatal error page" is displayed.

Expected result

The node preview is displayed above the node form.