Symptoms

The client built a custom solution where they build a deployment package. This seems to work on the K2 Server machine, but it does not work on the TFS server machine.
 

Diagnoses

This is because there were a couple of registry key entries missing on the TFS machine.
HKEY_LOCAL_MACHINESOFTWARESourceCodeContentTypes.kprx
HKEY_LOCAL_MACHINESOFTWARESourceCodeContentTypes.sodx
HKEY_LOCAL_MACHINESOFTWAREWow6432NodeSourceCodeContentTypes.kprx
HKEY_LOCAL_MACHINESOFTWAREWow6432NodeSourceCodeContentTypes.Sodx
Because of this, the "targets" on the TFS machine to be empty, and because of that, there was no package created.
 

Resolution

Once the client added the registry keys to the TFS machine, the targets got populated correctly and the package got created.