Just to document my command line to get rid of this blocking error.
My environment is under Azure DevOps version control and some other user already created a workspace on this computer.
Close Visual Studio (2017 in my case) and open the command line. It can be open via Developer Command Prompt for VS 2017; so you would not need to provide the entire path to tf.exe.
Next, run a tf command to delete the workspace created by the previous user (Name and Surname)
Now you can open Visual Studio, connect to Azure DevOps server, create a new workspace, map your folders for projects and metadata, and get latest.