In my experience the main pain points surrounding TFS have been: 1) Weird file locking, sometimes TFS will tell me that I have the file locked when I don't. 2) Branching seems to be a heavyweight operation and that makes people hesitant to branch. 3) GUI is slow and the CLI tools still pop up GUI windows(?!) 4) The workflow is integrated. This might sound like a good thing, but in reality it means that people try to incorporate the default workflow into their business process and it never quite meets everyones needs. You can try to find different scrum/agile templates out there but they are kind of a pain to install and modify and again, don't quite meet your needs 5) People don't use shelves frequently enough.
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