Publish target not working with relative path

Using VS 2017 I created a new ASP.Net Core project (net461). I went to publish the project using "Web Deploy Package" option and chose a relative path ("..\output\Test.zip").

I get the following error.

C:\Program Files (x86)\Microsoft Visual Studio\2017\Professional\MSBuild\Sdks\Microsoft.NET.Sdk.Publish\build\netstandard1.0\PublishTargets\Microsoft.NET.Sdk.Publish.MSDeployPackage.targets(88,5): Error : Web deployment task failed. (The path '..\output\WebApplication2.Parameters.xml' is not valid.)
Package failed.

If I change the package path to be something like "C:\temp\Test.zip" it works fine and creates the package.