Enabling Versioned Settings fails with "The directory name in invalid" error

Symptoms

• TeamCity Server is installed on a Windows machine.
• Enabling Versioned Settings for a project fails with the following error: Failed to apply changes from VCS to project settings (revision <revision>): Error while running config generator: Cannot run program "<TeamCity JRE Home>\bin\java" (in directory "<TeamCity Data Directory>\system\caches\versionedSettingsIncrementalMode\<Version Settings VCS Root ID>\<....>\sources"): CreateProcess error=267, The directory name is invalid. Please fix the errors in the script and make a new commit.
• The path <TeamCity Data Directory>\system\caches\versionedSettingsIncrementalMode\<Version Settings VCS Root ID>\<....>\sources is longer than the 260-character limit.
• Long path support is enabled on this Windows machine, but it does not help.

Cause

The long path support is not affecting TeamCity. The path in the Windows file system must be shorter than 260 characters.

Resolution

The ID of the VCS Root used to store the project settings can be shortened in the VCS Root settings. This way, the path can be shortened to fit within the character limit.

Additional information

Unable to create project from versioned settings (long path do datadirectory on Windows)