Install dotnet cli sdk 1.0.0-preview3-004050
Open an xproj based solution (I opened the nuget.core solution, Not sure if this is an issue with all xproj solutions.)
Solution should load without error
Get an error -

dotnet --info output:
E:\nuget\NuGet.Client [dev 鈮> dotnet --info
.NET Command Line Tools (1.0.0-preview2-003121)
Product Information:
Version: 1.0.0-preview2-003121
Commit SHA-1 hash: 1e9d529bc5
Runtime Environment:
OS Name: Windows
OS Version: 10.0.14393
OS Platform: Windows
RID: win10-x86
Not sure if dev14 is suppose to play nice with preview3. Raising a bug for visibility.
This looks like a dupe of https://github.com/dotnet/cli/issues/4248
Try the options documented here:
https://github.com/dotnet/cli/blob/rel/1.0.0/Documentation/ProjectJsonToCSProj.md
If someone comes here maybe after installing VS 2017 RC which also comes with newer toolings than preview 2, take a look here: https://github.com/dotnet/cli/blob/rel/1.0.0/Documentation/ProjectJsonToCSProj.md#how-do-i-work-with-projectjson-and-csproj-on-the-same-machine
You can setup your global.json to use preview2 tooling in old projects which are not migrated (back) to .csproj.
Most helpful comment
If someone comes here maybe after installing VS 2017 RC which also comes with newer toolings than preview 2, take a look here: https://github.com/dotnet/cli/blob/rel/1.0.0/Documentation/ProjectJsonToCSProj.md#how-do-i-work-with-projectjson-and-csproj-on-the-same-machine
You can setup your
global.jsonto use preview2 tooling in old projects which are not migrated (back) to.csproj.