Build failing on TFS2013 witht the workspace permissions error - tfs

Question

We have verified the solution file is exist in the folder also it's mapped in to the local workspace.
Source setting on the build directory set as below. Also have confusion in setting build agent folder. Reffered few blogs but nothing works.
Source control folder
$/ABC Project/CAP/Spon/SponGroupP/Sponsor
Build agent folder
$(SourceDir)
Other Errors and Warnings
2 error(s), 0 warning(s)
**No matching items found in $/ABC Project/CAP/Spon/SponGroupP/Sponsor in your workspace, or you do not have permission to access them.**
Exception Message: One or more errors occurred while attempting to create a Label. (type LabelException)Exception Stack Trace: at System.Activities.Statements.Throw.Execute(CodeActivityContext context) at System.Activities.CodeActivity.InternalExecute(ActivityInstance instance, ActivityExecutor executor, BookmarkManager bookmarkManager) at System.Activities.Runtime.ActivityExecutor.ExecuteActivityWorkItem.ExecuteBody(ActivityExecutor executor, BookmarkManager bookmarkManager, Location resultLocation)
Can someone help me out on this please.

Answer 1

Update:
Your file path is too long, there are two Sponsor in your folder structure. Besides, try to tweak the source control path in TFS server, which may do the trick. Details take a look at this question: 'CSC:CSC(0,0): Error CS2001: Source file [file] could not be found.' when running a gated check in (C#)
First try to turn the label sources in Process--TF Version Control of your XAML build definition from True(default value) to False
This will narrow down if the issue is related to creating label or not. If the build succeed, then you should double check if your build service account have have appropriate permissions to create labels.