So I am going to ask my original question, but then answer it because I found a solution.
Since I recently upgraded my dev box from VS 2015 to VS 2015 Update 1, my custom XAML template encountered an error that I didn't seem to cause. I was wondering why?
The build exception most may be seeing and I saw: Cannot set unknown member 'Microsoft.TeamFoundation.Build.Activities.RunScript.FailOnNonZeroExitCode'(type XamlObjectWriterException)
Turns out Microsoft made some sort of schema change in VS 2015 update 1 that adds a property to what I experienced as 4 lines in the XAML that will break the automatic build templates if running a VS 2015 build controller and agent(s). Not sure if the build controller can be updated yet to match, but here is what I found in the two XAMLs:
Good with no extra property:
Changed schema using Update 1 (same 4 lines of code):
Workaround/hack if you don't/can't update build controller:
I will be testing to see if I can update our build controller to update 1 to see if it permanently fixes this issue and post back.