In my case, I always have a NuGet.Config file in the parent folder that contains the dotnet-core feed and it doesn't work. I also tried moving the NuGet.Config to the same folder, and it still doesn't work.

Note that I don't find .dotnet folder created in my home folder.

Structure of the 'Test' folder:

PS:36> tree . /F
C:\ARENA\APPS\TEST
    NuGet.config
    Program.cs
    Test.csproj

Content of NuGet.config:

PS:40> cat .\NuGet.config
<?xml version="1.0" encoding="utf-8"?>
<configuration>
  <packageSources>
    <add key="nuget.org" value="https://api.nuget.org/v3/index.json" />
    <add key="dotnet-core" value="https://dotnet.myget.org/F/dotnet-core/api/v3/index.json" />
    <add key="powershell-core" value="https://powershell.myget.org/F/powershell-core/api/v3/index.json" />
  </packageSources>
</configuration>

Content of Test.csproj:

PS:42> cat .\Test.csproj
<Project Sdk="Microsoft.NET.Sdk">

  <PropertyGroup>
    <OutputType>Exe</OutputType>
    <TargetFramework>netcoreapp2.0</TargetFramework>
  </PropertyGroup>

</Project>

Then running dotnet restore fails in the folder:

PS:44> C:\Users\usr\Downloads\dotnet-sdk-latest-win-x64\dotnet.exe restore
  Restoring packages for C:\Arena\Apps\Test\Test.csproj...
C:\Users\usr\Downloads\dotnet-sdk-latest-win-x64\sdk\2.0.0-preview3-006607\NuGet.targets(102,5): 
error : Failed to retrieve information about 'Microsoft.NETCore.App' from remote source 'C:\Users\usr\.dotnet\NuGetFallbackFolder'. [C:\Arena\Apps\Test\Test.csproj]

The dotnet --info:

PS:45> C:\Users\usr\Downloads\dotnet-sdk-latest-win-x64\dotnet.exe --info
.NET Command Line Tools (2.0.0-preview3-006607)

Product Information:
 Version:            2.0.0-preview3-006607
 Commit SHA-1 hash:  81dd304f72

Runtime Environment:
 OS Name:     Windows
 OS Version:  10.0.15063
 OS Platform: Windows
 RID:         win10-x64
 Base Path:   C:\Users\usr\Downloads\dotnet-sdk-latest-win-x64\sdk\2.0.0-preview3-006607\

Microsoft .NET Core Shared Framework Host

  Version  : 2.0.0-preview3-25426-01
  Build    : 122309e7e7fb9bb233fe4910f822c28ec73f0957

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