Error: "Failed to perform checkout on agent" after updating to TeamCity version 2017.1.5 (build 47175)

Since the TeamCity update, all the builds are failing with the following message:

Failed to perform checkout on agent: Failed to create workspace: The path C:\TeamCity\buildAgent\work\40a0760437c72d4c is already mapped in workspace TeamCity-A3-64b2bcf2029c4ed29ad06489ebf8cf26;045dff5e-1adf-4a08-8226-c613218bbd6b\username.

I had to change the VCS "Checkout directory" option to "Custom path" to make it work.