Upgrading to V17.0.0 No physical template file was found for template

ensure the following settings are removed from your .csproj file:

<RazorCompileOnBuild>false</RazorCompileOnBuild>
<RazorCompileOnPublish>false</RazorCompileOnPublish>

From: Version Specific Upgrades | Umbraco CMS

So in short:

Models Builder mode Install Umbraco.Cms.DevelopmentMode.Backoffice Remove <RazorCompileOnBuild> & <RazorCompileOnPublish>
InMemoryAuto Yes No
Source-code modes (SourceCodeAuto, SourceCodeManual, AppData) No Yes