To allow the individual .csproj file to be accessed by the Make VS.NET action, remove .csproj from the Application Mappings for your web application.
Alternatively, specify the project's local .sln file (VS.NET always creates a solution for an individual project when saved from the IDE anyway); when specifying the .sln file, the Make VS.NET action converts each project's http location to a local filename (if it is located on localhost), so it doesn't need to access the file over http.
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