nuget “Access is denied” “Command existed with code 5”

I just setup a new Windows Server 2008 R2 development VM in order to work on a project. Downloaded the source code from Git and hit “Rebuild Solution”. Few projects failed to build with the following error (taken from the Output window after enabling MSBuild verbosity to Detailed:

Task “Exec” “C:\Work\Github\………….\.nuget\nuget.exe” install “C:\Work\Github\…………\packages.config” -source “”  -RequireConsent -solutionDir “C:\Work\Github\…………….\ “

C:\Work\Github\…….\.nuget\NuGet.targets(87,9): error : Access is denied.

C:\Work\Github\…..\.nuget\NuGet.targets(87,9): error MSB3075: The command “”C:\Work\Github\…..\.nuget\nuget.exe” install “C:\Work\Github\…..\packages.config” -source “”  -RequireConsent -solutionDir “C:\Work\Github\…..\ “” exited with code 5. Please verify that you have sufficient rights to run this command.
Done executing task “Exec” — FAILED.

The NuGet executable could not be executed during the build process! I had never faced this problem before. Came across few posts on the Internet where others were facing similar problems and had recommended to change certain NuGet settings or to delete and reinstall NuGet altogether. I did all that but no use.

I manually ran the nuget.exe in a command prompt and got the same “Access is denied” error. All of a sudden, light-bulb moment I looked at the properties of the nuget.exe and that is where the answer was! See below the screen shot.

Perhaps this is Windows Server 2008 security feature but the Everyone was allowed only “Read” permission on the nuget.exe; in order for it to get executed, the caller should have the “Read & Execute” permission as well.

Granting the “Everyone” group “Read & Execute” seems to solve the problem.

I would love to hear if you know of a better way to solve this issue. Drop me a line. Thanks.