'dotnet new console' fails with '2.0.0-preview3-006607' .NET Command Line Tools

Steps to reproduce

dotnet new console

Expected behavior

No error and successfully restored

Actual behavior

PS:52> dotnet new console
The template "Console Application" was created successfully.

Processing post-creation actions...
Running 'dotnet restore' on C:\Arena\Apps\dotnet2\bb\bb.csproj...
  Restoring packages for C:\Arena\Apps\dotnet2\bb\bb.csproj...
C:\Users\usr\AppData\Local\Microsoft\dotnet\sdk\2.0.0-preview3-006607\NuGet.targets(102,5): error : 
Failed to retrieve information about 'Microsoft.NETCore.App' from remote source 'C:\Users\usr\.dotnet\NuGetFallbackFolder'. [C:\Arena\Apps\dotnet2\bb\bb.csproj]


Restore failed.
Post action failed.
Description: Restore NuGet packages required by this project.
Manual instructions: Run 'dotnet restore'

PS:53> dotnet restore
  Restoring packages for C:\Arena\Apps\dotnet2\bb\bb.csproj...
C:\Users\usr\AppData\Local\Microsoft\dotnet\sdk\2.0.0-preview3-006607\NuGet.targets(102,5): error : 
Failed to retrieve information about 'Microsoft.NETCore.App' from remote source 'C:\Users\usr\.dotnet\NuGetFallbackFolder'. [C:\Arena\Apps\dotnet2\bb\bb.csproj]

Environment data

dotnet --info output:

.NET Command Line Tools (2.0.0-preview3-006607)

Product Information:
 Version:            2.0.0-preview3-006607
 Commit SHA-1 hash:  81dd304f72

Runtime Environment:
 OS Name:     Windows
 OS Version:  10.0.15063
 OS Platform: Windows
 RID:         win10-x64
 Base Path:   C:\Users\usr\AppData\Local\Microsoft\dotnet\sdk\2.0.0-preview3-006607\

Microsoft .NET Core Shared Framework Host

  Version  : 2.0.0-preview3-25426-01
  Build    : 122309e7e7fb9bb233fe4910f822c28ec73f0957

[livarcocc]

@JonathanLoscalzo, look under %appdata%/NuGet/NuGet.Config and remove any references to CLIFallbackFolder from it. This is an entry that we no longer need in preview3. If you do that, you will get the real error, which is that we can’t find the M.NC.App package. The reason for that is that the runtime between the CLI and asp.net are out of sync and when that happens, you need the feed above.

Still, I am moving this issue to NuGet, I don’t think NuGet should say that it failed to find the package on that feed if the folder is empty, it should just say that it failed to find the package.

[daxian-dbw]

@livarcocc Could you please comment? Moving the NuGet.config file to the same folder doesn’t work for me, and I see the same problem with 2.0.0-preview3-006609. This is on a win10 clean machine without %appdata%/NuGet folder.