I\'m setting up a new build server to support a migration of our development team from VS2010 to VS2013. We are not migrating our TFS server just yet so the new build server
I ran into a similar issue...and here's why. Starting with VS2013, MSBuild is shipped as part of Visual Studio instead of the .NET Framework. Refer to this msdn blog.
So to resolve my issue [the correct way], I had to use MSBuild from the "C:\Program Files (x86)\MSBuild\12.0\bin\" instead of "C:\Windows\Microsoft.NET\Framework64\v4.0.30319\"