Even if you provide the /Y switch with xcopy, you'll still get an error when xcopy doesn't know if the thing you are copying is a file or a directory. This error will appear as "exited with code 2". When you run the same xcopy at a command prompt, you'll see that xcopy is asking for a response of file or directory.
To resolve this issue with an automated build, you can echo in a pre-defined response with a pipe.
To say the thing you are copying is a file, echo in F:
echo F|xcopy /y ...
To say the thing you are copying is a directory, echo in D:
echo D|xcopy /y ...
Sometimes the above can be resolved by simply using a copy command instead of xcopy:
copy /y ...
However, if there are non-existent directories leading up to the final file destination, then an "exited with code 1" will occur.
Remember: use the /C switch and xcopy with caution.
My fix for this issue was to go into the target bin folder, and ensure that the proper subfolder exists there. Once that subfolder was manually created, the build process completed successfully.
Probably you using TeamCity with git. If yes, check that folders you want to copy are exists in git repository. Usually git aviod adding empty project folders to repository, so xcopy fails to find it and generates a error.
You can add some empty text file to empty folder, commit and see folder appears in repository.
copy fixed it for me. xcopy with /c /y did not work. I was getting an exit 4 so I went with xcopy, but turned out I needed quotes around ($TargetPath).
My script:
if $(ConfigurationName) == Debug copy "$(TargetPath)" "$(SolutionDir)\Folder\bin\Debug\$(TargetFileName)"