Today our azure hosted build pipelines running against TFVC branches stopped working with the error Process ‘msbuild.exe’ exited with code ‘1’.
Resolution which worked for us : Update the solution path with wildcard to find the build solution path. Previously we had full path defined but somehow it started causing error.
It looks like Microsoft updated something under the hood and if you are stuck with the same issue then this might help you to move forward.
Brewing thought 
You have been selected to be updated to the latest version of the agent, that runs your pipeline: https://github.com/microsoft/azure-pipelines-agent/releases/tag/v2.211.0
It is still a pre-release at the time of writing this.
This issue might contain the fix that resolves this and gets your pipeline to behave in the old way:
https://github.com/microsoft/azure-pipelines-agent/issues/3982
agent.TfVCUseSecureParameterPassing should configured to “false”
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