"This app does not support the contract specified or is not installed" error in Visual Studio designer

I have an issue developing my app on a VM provided by the project owner which is running Windows Server 2016.

The problem I'm facing is when developing a WinRT application in Visual Studio 2015 and when working with XAML files - Visual Studio fails to open the visual editor / preview for the XAML and throws the following error:

System.Runtime.InteropServices.COMException
This app does not support the contract specified or is not installed. (Exception from HRESULT: 0x80270254)
   at Microsoft.VisualStudio.DesignTools.HostUtility.AppPackage.AppPackageNativeMethods.IApplicationActivationManager.ActivateApplication(String appUserModelId, String activationContext, ActivateOptions options, Int32& processId)
   at Microsoft.VisualStudio.DesignTools.HostUtility.AppPackage.DesignerWrtUtility.ActivateApplication(String appUserModelId, String activationContext, Object site, Boolean isRunningElevated)
   at Microsoft.VisualStudio.DesignTools.HostUtility.Platform.AppContainerProcessDomainFactory.ActivateApplicationInternal(String appUserModelId, String activationContext, Object site)
   at Microsoft.VisualStudio.DesignTools.HostUtility.Platform.AppContainerProcessDomainFactory.CreateDesignerProcess(String applicationPath, String clientPort, Uri hostUri, IDictionary environmentVariables, Int32& processId, Object& processData)
   at Microsoft.VisualStudio.DesignTools.DesignerContract.Isolation.Primitives.ProcessDomainFactory.ProcessIsolationDomain..ctor(ProcessDomainFactory factory, IIsolationBoundary boundary, AppDomainSetup appDomainInfo, IIsolationTarget isolationTarget, String baseDirectory)
   at Microsoft.VisualStudio.DesignTools.DesignerContract.Isolation.Primitives.ProcessDomainFactory.CreateIsolationDomain(IIsolationBoundary boundary)
   at Microsoft.VisualStudio.DesignTools.HostUtility.Platform.AppContainerProcessDomainFactory.CreateIsolationDomain(IIsolationBoundary boundary)
   at Microsoft.VisualStudio.DesignTools.DesignerContract.Isolation.Primitives.IsolationBoundary.Initialize()
   at Microsoft.VisualStudio.DesignTools.DesignerContract.Isolation.Primitives.IsolationBoundary.CreateInstance[T](Type type)
   at Microsoft.VisualStudio.DesignTools.DesignerContract.Isolation.IsolatedObjectFactory.Initialize()
   at Microsoft.VisualStudio.DesignTools.DesignerHost.Services.VSIsolationService.CreateObjectFactory(IIsolationTarget isolationTarget, IObjectCatalog catalog)
   at Microsoft.VisualStudio.DesignTools.DesignerContract.Isolation.IsolationService.CreateLease(IIsolationTarget isolationTarget)
   at Microsoft.VisualStudio.DesignTools.DesignerContract.Isolation.IsolationService.CreateLease(IIsolationTarget isolationTarget)
   at Microsoft.VisualStudio.DesignTools.DesignerContract.IsolatedDesignerService.CreateLease(IIsolationTarget isolationTarget, CancellationToken cancelToken, DesignerServiceEntry& entry, IServiceProvider serviceOverrides)
   at Microsoft.VisualStudio.DesignTools.DesignerContract.IsolatedDesignerService.IsolatedDesignerView.CreateDesignerViewInfo(CancellationToken cancelToken)
   at Microsoft.VisualStudio.DesignTools.DesignerContract.Isolation.IsolatedTaskScheduler.InvokeWithCulture[T](CultureInfo culture, Func`2 func, CancellationToken cancelToken)
   at Microsoft.VisualStudio.DesignTools.DesignerContract.Isolation.IsolatedTaskScheduler.<>c__DisplayClass10_0`1.<StartTask>b__0()
   at System.Threading.Tasks.Task`1.InnerInvoke()
   at System.Threading.Tasks.Task.Execute()

I can start the app just fine, so the problem is only with the VS editor.

Any idea how to solve this problem?

I have run into the same error and think it maybe has something to do with running a later SDK than the version of windows supports.. I really know nothing about the topic sadly, and came here trying to get a solution as well, but the problem only became manifest after I tried to update all the software I was using.