TF400587 and TF401098 Error when adding a new PortfolioBackLog

Question

On a fresh TFS 2013 installation, I tried to add a new Initiative category to the Portfolio Hierarchy of a Team Project using the Agile Process Template following the steps described here
https://msdn.microsoft.com/en-us/library/dn306083.aspx
Importing the new ProcessConfig.xml file returned the error below:
"..TF400587: This element defines the states for work items that appear on your backlog. Each state must exist in at least one of the work item types belong to category defined in: 'PortfolioBacklog(Fabrikam.InitiativeCategory)/States'. The following
state does not exist in any of the work item types: In Progress, Complete.
The following element contains an error: PortfolioBacklog(Fabrikam.InitiativeCategory)/States. TF401098: This element defines the states for work items that appear on your backlog. The state configuration is incorrect. Each work item on this backlog must have
one state with the type 'Complete'. The following work item type does not have any state with the type 'Complete': Initiative."
- Vanessa

Answer 1

Hi Vanessa,
The MSDN link https://msdn.microsoft.com/en-us/library/dn306083.aspx step shown below specified for Scrum template. 
Since you are doing this for MSF Agile template you have to use below shown 
<PortfolioBacklog category="Custom.InitiativeCategory" pluralName="Initiatives" singularName="Initiative">
<AddPanel>
<Fields>
<Field refname="System.Title" />
</Fields>
</AddPanel>
<Columns>
<Column width="100" refname="System.WorkItemType" />
<Column width="400" refname="System.Title" />
<Column width="100" refname="System.State" />
<Column width="50" refname="Microsoft.VSTS.Common.BusinessValue" />
<Column width="200" refname="System.Tags" />
</Columns>
<States>
<State type="Proposed" value="New" />
<State type="InProgress" value="Active" />
<State type="InProgress" value="Resolved" />
<State type="Complete" value="Closed" />
</States>
</PortfolioBacklog>
This is because Scrum template and Agile template has different state transitions for feature/userstory etc. work items.
Cheers!
Chaminda