I have installed .NET Core 1.1 SDK and Tooling 1.0.1 Tools Preview 2. When I create new .NET Core project using Visual Studio 2015 it creates 1.0.1 project instead of 1.1. Not sure how to change this ugly behavior?
That's because the templates ship with Visual Studio, which haven't received an update as part of the .NET Core release. The reason for that is probably because 1.1 is a "Current" release and 1.0.1 is an "LTS" (Long Term Support) release. Visual Studio will most likely follow the LTS releases as they provide the best and most reliable support for customers.
If you create a new application with the .NET CLI tooling (e.g. dotnet new), it will use the latest version. You can specify the type of the template with the -t switch:
dotnet new: creates a console appdotnet new -t web: creates a full-blown web appdotnet new -t lib: creates a class library project