MSBuild Error after upgrading TeamFoundation dlls to 2017

So, we were using 2013 TFS dlls in our projects (namely TeamFoundation.Client, TeamFoundation.VersionControl.Client, and TeamFoundation.Common). I recently upgraded the project to use 2017 versions of the above mentioned dlls (We have VS2017). I am getting them from the below folder.

C:\Program Files (x86)\Microsoft Visual Studio\2017\Enterprise\Common7\IDE\CommonExtensions\Microsoft\TeamFoundation\Team Explorer

After upgrading, when I build my solution, I get the following error:

C:\Program Files (x86)\Microsoft Visual Studio\2017\Enterprise\MSBuild\Microsoft\Microsoft.NET.Build.Extensions\Microsoft.NET.Build.Extensions.NETFramework.targets(56,5): warning : Resolved file has a bad image, no metadata, or is otherwise inaccessible. The system cannot find the path specified. (Exception from HRESULT: 0x80070003)

I am not familiar with MSBuild so not sure how to proceed.

The error takes me to the following line in the MSBuild code:

GetDependsOnNETStandard Condition="'$(_RunGetDependsOnNETStandard)' == 'true'"
                         References="@(_CandidateNETStandardReferences)">
  <Output TaskParameter="DependsOnNETStandard" PropertyName="DependsOnNETStandard" />
</GetDependsOnNETStandard>

There is an outstanding issue with Visual Studio 2017 and DependsOnNETStandard that should hopefully be resolved in 15.8

I just encountered the same problem today when upgrading a project that was originally created VS 2015 and upgraded to VS 2017.

It looks like the upgrade of the projects misses a few elements in the XML that it needs.

If you edit the csproj files of the effected projects and add

<DependsOnNETStandard>false</DependsOnNETStandard>

to the top PropertyGroup like so:

<PropertyGroup>
  ...
  <DependsOnNETStandard>false</DependsOnNETStandard>
</PropertyGroup>

It should resolve the issue. It did for me.

Details of the issue and discussion around it can be found at: https://github.com/dotnet/sdk/issues/1544