We have a build definition in TFS 2015 that have worked fine with Visual Studio 2015 projects and solutions. We have now decided to upgrade to Visual Studio 2017 and thus we
we are facing a similar issue and it is not possible for us to update ourselves as it is maintained on a company level where we cannot take that much influence. However our team wanted to switch to VS2017 and make use of the C# 7 features. That's why we tried it as well with replacing the build steps from Visual Studio Build to MSBuild. Sadly this did not work as expected (we got some errors during the build).
As our main objective is to use the C# 7 features we looked for a way how to still achieve that at the time with Visual Studio 2015 remaining on the Build Server. We ended up using the nuget package Microsoft.Net.Compilers that, when used in a project, will use that compiler instead of the installed one. More on this can be found in this Thread.