SlnGen unexpectedly fails when using dotnet restore

[Aegle1]

SlnGen succeeds when using msbuild but fails when using dotnet restore.

msbuild /restore /t:SlnGen dirs.proj // successful
dotnet restore /t:SlnGen dirs.proj // fail

Reproduce setup:
OS: Windows 11 23H2 Build 22631.3007
Visual Studio version: VS Community 2022 17.8.3

File structure:

-
|-dirs.proj
|-global.json
|-directory.build.props
|-directory.packages.props
|-src
    |-dirs.proj
    |-ConsoleApp
        |-ConsoleApp.csproj
        |-Program.cs

File content:
dirs.proj

<Project Sdk="Microsoft.Build.Traversal">
    <ItemGroup>
        <ProjectReference Include="src\dirs.proj" />
    </ItemGroup>
</Project>

global.json

{
    "msbuild-sdks": {
        "Microsoft.Build.Traversal": "4.1.0"
    }
}

directory.build.props

<Project>
    <PropertyGroup>
        <ManagePackageVersionsCentrally>true</ManagePackageVersionsCentrally>
        <SlnGenSolutionFileFullPath>$(MSBuildProjectDirectory)\dirs.sln</SlnGenSolutionFileFullPath>
        <SlnGenLaunchVisualStudio>false</SlnGenLaunchVisualStudio>
    </PropertyGroup>

    <ItemGroup>
        <PackageReference Include="Microsoft.VisualStudio.SlnGen" />
    </ItemGroup>
</Project>

directory.packages.props

<Project>
    <ItemGroup>
        <PackageVersion Include="Microsoft.VisualStudio.SlnGen" version="11.1.0" />
    </ItemGroup>
</Project>

src/dirs.proj

<Project Sdk="Microsoft.Build.Traversal">
    <ItemGroup>
        <ProjectReference Include="ConsoleApp\ConsoleApp.csproj" />
    </ItemGroup>
</Project>

src/ConsoleApp/ConsoleApp.csproj

<Project Sdk="Microsoft.NET.Sdk">
  <PropertyGroup>
    <OutputType>Exe</OutputType>
    <TargetFramework>net8.0</TargetFramework>
    <ImplicitUsings>enable</ImplicitUsings>
    <Nullable>enable</Nullable>
  </PropertyGroup>
</Project>

src/ConsoleApp/Program.cs

Console.WriteLine("Hello, World!");

Output:

C:\Workspace\SlnGenRepro>msbuild /Restore /t:SlnGen dirs.proj
MSBuild version 17.8.3+195e7f5a3 for .NET Framework
Build started 1/17/2024 2:57:47 AM

......

Build succeeded.
    0 Warning(s)
    0 Error(s)

Time Elapsed 00:00:05.94

C:\Workspace\SlnGenRepro>dotnet restore /t:SlnGen
  Determining projects to restore...
  All projects are up-to-date for restore.
C:\Users\<user-name>\.nuget\packages\microsoft.visualstudio.slngen\11.1.0\build\Microsoft.VisualStudio.SlnGen.targets(30,5):
error MSB6006: "slngen" exited with code -2147450730. [C:\Workspace\SlnGenRepro\dirs.proj]

C:\Workspace\SlnGenRepro>