RestoreUseStaticGraphEvaluation no longer works to build RNW in Visual Studio >= 17.6

Problem Description

Starting in Visual Studio 17.6, if you try to build Microsoft.ReactNative.sln you'll get the following failure in the NuGet.RestoreEx.targets file:

C:\Program Files\Microsoft Visual Studio\2022\Preview\Common7\IDE\CommonExtensions\Microsoft\NuGet\NuGet.RestoreEx.targets(19,5): error : '{' is an unexpected token. The expected token is '"' or '''. Line 2, position 31.
3>C:\Program Files\Microsoft Visual Studio\2022\Preview\Common7\IDE\CommonExtensions\Microsoft\NuGet\NuGet.RestoreEx.targets(19,5): error :    at System.Xml.XmlTextReaderImpl.Throw(Exception e)
3>C:\Program Files\Microsoft Visual Studio\2022\Preview\Common7\IDE\CommonExtensions\Microsoft\NuGet\NuGet.RestoreEx.targets(19,5): error :    at System.Xml.XmlTextReaderImpl.ParseAttributes()
3>C:\Program Files\Microsoft Visual Studio\2022\Preview\Common7\IDE\CommonExtensions\Microsoft\NuGet\NuGet.RestoreEx.targets(19,5): error :    at System.Xml.XmlTextReaderImpl.ParseElement()
3>C:\Program Files\Microsoft Visual Studio\2022\Preview\Common7\IDE\CommonExtensions\Microsoft\NuGet\NuGet.RestoreEx.targets(19,5): error :    at System.Xml.XmlTextReaderImpl.ParseElementContent()
3>C:\Program Files\Microsoft Visual Studio\2022\Preview\Common7\IDE\CommonExtensions\Microsoft\NuGet\NuGet.RestoreEx.targets(19,5): error :    at System.Xml.XmlLoader.LoadNode(Boolean skipOverWhitespace)
3>C:\Program Files\Microsoft Visual Studio\2022\Preview\Common7\IDE\CommonExtensions\Microsoft\NuGet\NuGet.RestoreEx.targets(19,5): error :    at System.Xml.XmlLoader.LoadDocSequence(XmlDocument parentDoc)
3>C:\Program Files\Microsoft Visual Studio\2022\Preview\Common7\IDE\CommonExtensions\Microsoft\NuGet\NuGet.RestoreEx.targets(19,5): error :    at System.Xml.XmlDocument.Load(XmlReader reader)
3>C:\Program Files\Microsoft Visual Studio\2022\Preview\Common7\IDE\CommonExtensions\Microsoft\NuGet\NuGet.RestoreEx.targets(19,5): error :    at Microsoft.Build.Shared.SolutionConfiguration.GetProjectConfigurations(String xmlString)
3>C:\Program Files\Microsoft Visual Studio\2022\Preview\Common7\IDE\CommonExtensions\Microsoft\NuGet\NuGet.RestoreEx.targets(19,5): error :    at Microsoft.Build.Shared.SolutionConfiguration..ctor(String xmlString)
3>C:\Program Files\Microsoft Visual Studio\2022\Preview\Common7\IDE\CommonExtensions\Microsoft\NuGet\NuGet.RestoreEx.targets(19,5): error :    at Microsoft.Build.Graph.ProjectInterpretation.<GetReferences>d__24.MoveNext()
3>C:\Program Files\Microsoft Visual Studio\2022\Preview\Common7\IDE\CommonExtensions\Microsoft\NuGet\NuGet.RestoreEx.targets(19,5): error :    at Microsoft.Build.Graph.GraphBuilder.ParseReferences(ProjectGraphNode parsedProject)
3>C:\Program Files\Microsoft Visual Studio\2022\Preview\Common7\IDE\CommonExtensions\Microsoft\NuGet\NuGet.RestoreEx.targets(19,5): error :    at Microsoft.Build.Graph.GraphBuilder.ParseProject(ConfigurationMetadata configurationMetadata)
3>C:\Program Files\Microsoft Visual Studio\2022\Preview\Common7\IDE\CommonExtensions\Microsoft\NuGet\NuGet.RestoreEx.targets(19,5): error :    at System.Lazy`1.CreateValue()

Notes:

1. This only repros if you build the solution within VS - building via the CLI still works fine.
2. Our CI currently uses VS 17.5 which is possibly why we haven't seen this yet.
3. The error can be can be worked around by setting <DisableRestoreUseStaticGraphEvaluation>true</DisableRestoreUseStaticGraphEvaluation> to prevent the (experimental) static graph evaluation from running.

Steps To Reproduce

1. Open Microsoft.ReactNative.sln in Visual Studio >= 17.6.
2. Build the solution

Expected Results

Solution builds successfully.

CLI version

12.0.0-alpha.3

Environment

info Fetching system and libraries information...
System:
  OS: Windows 10 10.0.25336
  CPU: "(24) x64 AMD Ryzen Threadripper PRO 3945WX 12-Cores     "
  Memory: 54.05 GB / 63.86 GB
Binaries:
  Node:
    version: 16.19.1
    path: C:\Program Files\nodejs\node.EXE
  Yarn:
    version: 1.22.19
    path: C:\Program Files (x86)\Yarn\bin\yarn.CMD
  npm:
    version: 9.6.2
    path: C:\Program Files\nodejs\npm.CMD
  Watchman: Not Found
SDKs:
  Android SDK: Not Found
  Windows SDK:
    AllowDevelopmentWithoutDevLicense: Enabled
    AllowAllTrustedApps: Enabled
    Versions:
      - 10.0.18362.0
      - 10.0.19041.0
      - 10.0.22000.0
      - 10.0.22621.0
IDEs:
  Android Studio: Not Found
  Visual Studio:
    - 16.11.33529.622 (Visual Studio Enterprise 2019)
    - 17.6.33723.286 (Visual Studio Enterprise 2022)
    - 17.7.33711.374 (Visual Studio Enterprise 2022)
Languages:
  Java: Not Found
  Ruby: Not Found
npmPackages:
  "@react-native-community/cli": Not Found
  react: Not Found
  react-native: Not Found
  react-native-windows: Not Found
npmGlobalPackages:
  "*react-native*": Not Found
Android:
  hermesEnabled: Not found
  newArchEnabled: Not found
iOS:
  hermesEnabled: Not found
  newArchEnabled: Not found

Target Platform Version

10.0.19041

Target Device(s)

Desktop

Visual Studio Version

Visual Studio 2022

Build Configuration

Debug

Snack, code example, screenshot, or link to a repository

No response

Open Microsoft.ReactNative.sln in Visual Studio 17.6 or newer and reproduce the restore failure reported from NuGet.RestoreEx.targets. Compare the behavior with DisableRestoreUseStaticGraphEvaluation enabled; done means the solution builds successfully in Visual Studio without relying on that workaround.