I recently ran into a TFS user who was trying to create a new build definition for his project. When he check the Process part of the build, no Build process template shows up in the drop down list, And if he tries to download a template, he gets error that the template already exist for that project.
After investigating a while, I came across the TFS group which he was a member of. This group had below two permission “Deny” for Build.
“Deny” permission supersedes all other permission set for any role or permission. You can find this by going to “Build” section of your project and selecting “Security” from the “Action” drop down. And then set “Allow” for above two permission.
This resolved the issue user was facing and able to see and add Build process template to new build.