I had the same error message but for a different problem.
So, I’m using MSBuild to automate build/deploy process for Azure Functions. Everything was working fine until I updated both Visual Studio 2017 and Visual Studio Build Tools 2017 at which point I started getting this error. To be precise I got this error only when using MSBuild, building project manually from VS was working fine.
In my case I already had everything set as per @Programmer’s answer.
But as I was using MSBuild it turned out that I also had to install NuGet targets and build tasks which are part of Visual Studio Build Tools.
