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Over the last several months myself and those on my development team have run across a new issue. When TFS creates a folder or does a 'Get latest' and overwrites any of the files in the folder structure, it changes the folder permissions to 'Read-only'. This causes an issue, an inconvenience really, where when we go to build the project it will tell us that our access to those folders is denied. If we open the folder and un-check 'Read-only' we are then able to proceed with the build and/or publish of the solution.

We have checked with our networking department, this is not a network setting and is not occurring anywhere outside of TFS. This is only occuring when TFS creates the folder.

Is anyone else having this issue? I've been pouring over settings off and on, trying to determine if I can change this setting. I do not want the folder to be read-only when it is generated or updated.

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This is by design but your inconvenience is not. In TFS 2012 (with VS2012) Microsoft introduced local workspaces that do not put anything as readonly.

You can go to the settings of your workspace and change it from server to local any time.

You are also making a common mistake in that you have files that change during a build under source control. If you remove those files you will be able to build even with server workspace.

It is bag practice to put files that you generate under source control.