When you upgrade Windows 10 to version 1703 build 15063.13, you can also update Visual Studio to 2017 version 15.1 and install Windows SDK 10.0.15063. However, the latest bits are not enough and you must apply one hotfix to keep the ability of creating application packages which are uploaded to Windows Dev Center.
The successful build ends up with an error message during application packaging:
File '<drive letter >:\ <project path>\<project name>_<application version>_scale-100.appx' not found.
The patch hasn’t been released yet. Luckily, Daniel Jacobson has created a hotfix which can be easily applied – storagepackageworkaround.zip (see ReadMe.txt).