Here are two fixes that TFS supported to make this work on my TFS on the room controller.
This only happens with Azure cloud services and only with the built-in build machine.
You will need to update the template and add quotes around the publishdir parameter in the “Install the project to create CSPack” section in the workflow and check the template again.
String.Format ("/ t: {0}: Publish / p: PublishDir =" "{1} /app.publish/" "{2}", ccprojName, outputDirectory, MSBuildArguments)
To fix the assembly loading error, you need to copy
"C: \ Program Files \ Microsoft SDK \ Windows Azure.NET SDK \ 2012-06 \ bin \ Microsoft.WindowsAzure.StorageClient.dll"
For
C: \ Program Files \ Microsoft Team Foundation Server 12.0 \ Tools
On the build machine and restart the service.
Let me know if this does not work for you.
source share