I've had similar problems when on the [Configuration tab of the VCS Management](https://community.denodo.com/docs/html/browse/7.0/vdp/administration/version_control_systems_integration/vcs_configuration/virtual_dataport_server_configuration#virtual-dataport-server-configuration) I used a URL different than ``http://<server>:<port>/tfs/<collection>/<project>[[/<folder>]*/<branch>]``
It seems by the error you are getting that you are typing the whole URL up to the environment.properties. What I do in this cases is using the URL up to the project, not including the path to the environment.properties file. ``http://myserver/tfs/mycollection/myproject/myfolder``
Hope this helps!