I know that I'm a little late in the game, but recently I ran into this problem and also figured out a solution. For the reasons mentioned by @mdutra above , that’s why it doesn’t work, but interestingly, Visual Studio 2010 and 2012 have two different “fixes”.
The Microsoft Connect post states:
Submitted by Microsoft on 30/30/2012 at 16:00:
VS 2012 now builds C # projects in a separate process that launches msbuild. The entry you added to the devenv.exe.config file (which worked on VS 2010) will not be considered in this process. You must add the same entry, namely
<enforceFIPSPolicy enabled="false"/>
msbuild; ,
c:\Windows\Microsoft.Net\Framework\v4.0.30319\msbuild.exe.config
</runtime> msbuild.exe.config.
C:\Windows\Microsoft.Net\Framework64\v4.0.30319\msbuild.exe.config, , MSBuild .