azure-pipelines-tasks: Cannot build in VSTS - Dotnet command failed with non-zero exit code

Without making any changes to our project files, just regular code update, our builds started to fail from this monday - 21/08/2017. During the build, in the log, we get the following error at the Restore step:

Error: C:\Program Files\dotnet\dotnet.exe failed with return code: 1

And

Dotnet command failed with non-zero exit code on the following projects : d:\a\1\s\BD.YRD.Tests\BD.YRD.Tests.csproj

We have not made any changes to the Tests csproj. We only tried to remove the test project just to see if it builds but then it started to throw the same error for the main web project. We use hosted2017 agent. Our .net core project is 1.1.1.

Any ideas how to solve it?

This is the output from our .net info step:

2017-08-23T08:01:05.6316895Z ##[section]Starting: Info 2017-08-23T08:01:05.6596901Z ============================================================================== 2017-08-23T08:01:05.6596901Z Task : .NET Core 2017-08-23T08:01:05.6606897Z Description : Build, test and publish using dotnet core command-line. 2017-08-23T08:01:05.6606897Z Version : 1.0.2 2017-08-23T08:01:05.6606897Z Author : Microsoft Corporation 2017-08-23T08:01:05.6606897Z Help : More Information 2017-08-23T08:01:05.6606897Z ============================================================================== 2017-08-23T08:01:07.3557124Z [command]“C:\Program Files\dotnet\dotnet.exe” --info d:\a\1\s\BD.YRD.Tests\BD.YRD.Tests.csproj 2017-08-23T08:01:09.3707368Z .NET Command Line Tools (2.0.0) 2017-08-23T08:01:09.3807382Z 2017-08-23T08:01:09.3807382Z Product Information: 2017-08-23T08:01:09.3857379Z Version: 2.0.0 2017-08-23T08:01:09.4357389Z Commit SHA-1 hash: cdcd1928c9 2017-08-23T08:01:09.4357389Z 2017-08-23T08:01:09.4387377Z Runtime Environment: 2017-08-23T08:01:09.4387377Z OS Name: Windows 2017-08-23T08:01:09.4387377Z OS Version: 10.0.14393 2017-08-23T08:01:09.4707381Z OS Platform: Windows 2017-08-23T08:01:09.5137399Z RID: win10-x64 2017-08-23T08:01:09.5137399Z Base Path: C:\Program Files\dotnet\sdk\2.0.0
2017-08-23T08:01:09.5137399Z 2017-08-23T08:01:09.5137399Z 2017-08-23T08:01:09.5137399Z Microsoft .NET Core Shared Framework Host 2017-08-23T08:01:09.5137399Z 2017-08-23T08:01:09.5137399Z 2017-08-23T08:01:09.5137399Z 2017-08-23T08:01:09.5137399Z Version : 2.0.0 2017-08-23T08:01:09.5137399Z 2017-08-23T08:01:09.5137399Z Build : e8b8861ac7faf042c87a5c2f9f2d04c98b69f28d 2017-08-23T08:01:09.5137399Z 2017-08-23T08:01:09.5137399Z 2017-08-23T08:01:09.5137399Z 2017-08-23T08:01:09.5147402Z [command]“C:\Program Files\dotnet\dotnet.exe” --info d:\a\1\s\BD.YRD.Web\BD.YRD.Web.csproj 2017-08-23T08:01:09.5147402Z .NET Command Line Tools (2.0.0) 2017-08-23T08:01:09.5147402Z 2017-08-23T08:01:09.5147402Z Product Information: 2017-08-23T08:01:09.5147402Z Version: 2.0.0 2017-08-23T08:01:09.5147402Z Commit SHA-1 hash: cdcd1928c9 2017-08-23T08:01:09.5147402Z 2017-08-23T08:01:09.5147402Z Runtime Environment: 2017-08-23T08:01:09.5147402Z OS Name: Windows 2017-08-23T08:01:09.5147402Z OS Version: 10.0.14393 2017-08-23T08:01:09.5147402Z OS Platform: Windows 2017-08-23T08:01:09.5147402Z RID: win10-x64 2017-08-23T08:01:09.5147402Z Base Path: C:\Program Files\dotnet\sdk\2.0.0
2017-08-23T08:01:09.5147402Z 2017-08-23T08:01:09.5147402Z 2017-08-23T08:01:09.5147402Z Microsoft .NET Core Shared Framework Host 2017-08-23T08:01:09.5147402Z 2017-08-23T08:01:09.5147402Z 2017-08-23T08:01:09.5147402Z 2017-08-23T08:01:09.5147402Z Version : 2.0.0 2017-08-23T08:01:09.5147402Z 2017-08-23T08:01:09.5147402Z Build : e8b8861ac7faf042c87a5c2f9f2d04c98b69f28d 2017-08-23T08:01:09.5147402Z 2017-08-23T08:01:09.5147402Z 2017-08-23T08:01:09.5147402Z 2017-08-23T08:01:09.5387414Z ##[section]Finishing: Info