[Hot Reload] Running dotnet watch in WEBAPI template on the CLI will show an error "failed to read staticwebassets.development.json" due to missing file when NET11 Preview 2 is installed.

[Chakolito]

REGRESSION INFO: Worked in NET11 Preview 1 and NET 10/9/8

INSTALL STEPS

1. Clean machine: Windows 25h2 x64
2. Install SDK 11 Preview 2
3. Add feed

REPRO STEPS

1. Open CMD, create a Web API using following commands:

   md WebAPI
   cd WebAPI
   dotnet new webapi -controllers
   

2. Run the app with dotnet watch.

Note

1. It does not repro when run with dotnet run.
2. It repros when using NET 10/9/8 framework while .NET 11.0 Preview 2 is installed.
3. When tested on the .NET 11 Preview 1 where it does not repro, it has the same files as with the Preview 2 while also having an empty staticwebassets folder.

ACTUAL

Error Log
❌ Failed to read 'C:\Users\v-ctamayo\WebAPI\obj\Debug\net11.0\staticwebassets.development.json': Could not find file 'C:\Users\v-ctamayo\WebAPI\obj\Debug\net11.0\staticwebassets.development.json'.

Expected
No error will occur.