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Team Foundation Server: Error when creating a new Team Project

A customer forwarded me the following error message they got when trying to create a new Team Project in TFS 2012:

Error
TF30169: The New Team Project Wizard was unable to download the process template MSF for Agile Software Development v5.0.

Explanation
The New Team Project Wizard encountered an unexpected error while attempting to download the process template. The download returned the following error: The process cannot access the file 'C:\Users\username\AppData\Local\Temp\TPW_tmp931A.tmp\Build\Templates\' because it is being used by another process.

User Action
Contact your Team Foundation Server administrator.

I was able to solve it by clearing the Visual Studio Team Explorer cache.

Execute the following steps:

  • Close Visual Studio if it’s open
  • Delete the Team Foundation cache on the client (be careful, delete the content of the folder only, not the cache folder itself)
    C:\Users\<yourusername>\Local Settings\Application Data\Microsoft\Team Foundation\3.0\Cache
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