Issue Building a single project using msbuild that has multiple configurations

Would setting the switch/property /p:OutputPath=Test work for you? It would output the dlls in a directory called Test (I guess you also could use TeamCity variables). Link to similar question/answer: https://stackoverflow.com/a/1083362/90033

Using the tfs online I got the same error, this fixed my problem

Unfortunately, you will have to modify every project that is used in the solution to have the same build path.

However, this is a pretty easy thing to do if your projects all build to the same path regardless of configuration: in the project properties' Build tab, select All Configurations from the Configuration dropdown and then change the Output path.

This will create entries for all of the configurations in the project file that do not already existing and set the same output path for all configurations.