Upgrading to v17-rc2; No physical template file was found for template

It is likely related to this breaking change:

If you use InMemoryAuto models builder, or rely on Razor runtime compilation for editing templates via the backoffice, you need to reference the Umbraco.Cms.DevelopmentMode.Backoffice package.

If using models builder with one of the source code modes (that is, not InMemoryAuto), you do not need to reference the Umbraco.Cms.DevelopmentMode.Backoffice package. However, ensure the following settings are removed from your .csproj file:

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

If you use the RoslynCompiler class in Umbraco, you need to reference the Umbraco.Cms.DevelopmentMode.Backoffice package and update your namespace usings.

Version Specific Upgrades | 17.latest (RC) | Umbraco CMS

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