Setting up a developer box VM and cloning it for other developers is a great way to spin up machines quickly. However if you have already connected to a TFS workspace your machines may throw an error regarding the workspace when logging on a different user and opening the client for the first time.
The TFS workspace files are cached on the client machine in the following directory.
The file you’ll need to modify will be the VersonControl.config file.
You can rename this file to VersionControl-old.config and re-launch the AX client, this will rebuild the config file with the appropriate workspace associated to the current user.