System could not be found Visual Studio 2017 ASP.NET Core project

Question

I've installed the newly released version of Visual Studio 2017 and started a fresh ASP.NET Core project targeting .NET Core.

Out of the box, I'm getting the

The type or namespace name 'System' could not be found (are you missing a using directive or an assembly reference?)

error. Any idea what's causing this and how to fix it?

Also, looks like there are problems with NuGet packages as well:

I also tried dotnet restore on the project through the command line and got the following error:

P.S. Kind of disheartening that you get an error in a fresh new project in the latest version of Visual Studio 2017!

UPDATE: SDK version is v 1.0.1 -- see below:

UPDATE 2: This is very strange. Looks like the original problem was due to NuGet package source pointing to a folder under Visual Studio 2015 folder. I unchecked it and left only nuget.org. With that my project seemed to have restored all the packages and when I started the project it loads up the standard ASP.NET page. But if I open startup.cs file, I get red squigglies all over the place but if I run the project, it works fine. What's going on here?

UPDATE 3: I closed the project and VS 2017. I then restarted VS 2017 and opened the project and now it seems to be fine. And I'm not referencing the .NETStandard library 1.6.1 and everything seems to be working fine now.

Answer 1

Came across the same issue today. I had an old nuget source that no longer existed. So I went into Tools > Nuget Packet Manager and un-checked the wrong one. Hit "Ok", and then rebuilt the project, and it works great now. It seems like you stumbled onto it, but also wanted to verify that it fixed my issue, and it does.