Azure App Service Deploy fails for .net core 2.0 with ERROR_FILE_IN_USE

I am trying to deploy an Asp.Net Core 2.0 web app to Azure App Service and receive this error

2017-09-07T15:20:07.7379097Z ##[section]Starting: Deploy Azure App Service
2017-09-07T15:20:07.7569101Z ==============================================================================
2017-09-07T15:20:07.7569101Z Task         : Azure App Service Deploy
2017-09-07T15:20:07.7569101Z Description  : Update Azure Web App Services, Web App On Linux , Function Apps, Mobile Apps using Web Deploy / Kudu REST APIs
2017-09-07T15:20:07.7569101Z Version      : 3.3.14
2017-09-07T15:20:07.7569101Z Author       : Microsoft Corporation
2017-09-07T15:20:07.7569101Z Help         : [More Information](https://aka.ms/azurermwebdeployreadme)
2017-09-07T15:20:07.7569101Z ==============================================================================
2017-09-07T15:20:11.9902809Z Got connection details for Azure App Service:'██████████████'
2017-09-07T15:20:16.5780995Z [command]"C:\Program Files\IIS\Microsoft Web Deploy V3\msdeploy.exe" -verb:sync -source:package='d:\a\r1\a\██████████████\drop\██████████████.zip' -dest:auto,ComputerName='https://██████████████.scm.azurewebsites.net:443/msdeploy.axd?site=██████████████',UserName='********',Password='********',AuthType='Basic' -setParam:name='IIS Web Application Name',value='██████████████' -enableRule:AppOffline -retryInterval:6000 -retryAttempts:10 -enableRule:DoNotDeleteRule -userAgent:VSTS_e29e8f6a-6b5e-463d-ba6e-72dd7866010e_release_10_50_99_1
2017-09-07T15:20:17.1910281Z Info: Using ID '████████████████████████████████████' for connections to the remote server.
2017-09-07T15:20:21.1058805Z Info: Using ID '████████████████████████████████████' for connections to the remote server.
2017-09-07T15:20:27.0283815Z Info: Updating file (██████████████\appsettings.Development.json).
2017-09-07T15:20:27.0283815Z Info: Updating file (██████████████\appsettings.json).
2017-09-07T15:20:27.0283815Z Info: Updating file (██████████████\Connected Services\Application Insights\ConnectedService.json).
2017-09-07T15:20:27.0283815Z Info: Updating file (██████████████\██████████████.Contract.dll).
2017-09-07T15:20:27.0283815Z Info: Updating file (██████████████\██████████████.Contract.pdb).
2017-09-07T15:20:27.0283815Z Info: Updating file (██████████████\██████████████.deps.json).
2017-09-07T15:20:27.0283815Z Info: Updating file (██████████████\██████████████.dll).
2017-09-07T15:21:24.7852633Z ##[error]Failed to deploy web package to App Service.
2017-09-07T15:21:24.7862628Z ##[warning]Try to deploy app service again with Rename locked files option selected.
2017-09-07T15:21:24.7862628Z ##[error]Error Code: ERROR_FILE_IN_USE
More Information: Web Deploy cannot modify the file '██████████████.dll' on the destination because it is locked by an external process.  In order to allow the publish operation to succeed, you may need to either restart your application to release the lock, or use the AppOffline rule handler for .Net applications on your next publish attempt.  Learn more at: http://go.microsoft.com/fwlink/?LinkId=221672#ERROR_FILE_IN_USE.
Error count: 1.

2017-09-07T15:21:24.7862628Z ##[error]Error: C:\Program Files\IIS\Microsoft Web Deploy V3\msdeploy.exe failed with return code: 4294967295
2017-09-07T15:21:26.2210992Z Successfully updated deployment History at https://██████████████.scm.azurewebsites.net/deployments/501504797684782
2017-09-07T15:21:26.2321177Z ##[section]Finishing: Deploy Azure App Service

I’ve tried some workarounds from similar issue without any luck https://github.com/Microsoft/vsts-tasks/issues/1607

Any ideas on what should I do to fix this?

[onionhammer]

This is definitely a hack/workaround, not a very satisfying solution.

[vincent1173]

New Version of Web Deploy is used in App Service Deploy to avoid FILE_IN_USE as per web deploy team recommendation. If you still face FILE_IN_USE error, we recommend you to move from Web Deploy to Run From Package.

Run From Package support is added in 4.* task version of Azure App Service Deploy task.

Run From Package helps in avoiding the FILE_IN_USE error.

If you face the below issue, Publish using zip deploy option is not supported for msBuild package type., please follow the steps provided here to change the package format.

#8710 - Added recommended message in the error logs to move from Web Deploy to Run From Package.

Closing the issue as the above recommendations should fix this. Please feel free to re-open or start a new thread, if any assistance required.