There could be many reasons why we get below error
Unspecified error Exception 0x80004005 (E_FAIL)
One of them i observed was that when i try to create a ASP .NET project at the onedrive directly. When i try this i get below error HRESULT: 0x80004005.
To avoid this i created my project on local folder and it worked. Now after you create on local, transfer this to the onedrive and work on your ASP .NET project.