On our workstations which test or develop FIPS-140-2 products (not production, obviously), this is a painful limitation.
Reproduce:
1. Enable FIPS-140-2 mode (secpol.msc => Local Policies => Security Option => System Cryptography: Use FIPS compliant algorithms for encryption, hashing and signing = Enabled)

2. Open VS2012 => open any project
3. Try to add a NuGet package
4. Enjoy the error

Comments: Hi, We cannot repro the issue 100% of the time. So I made the best guess and implemented a fix which hopefully will solve the error you're seeing. Would you be interested in testing it? If yes, please install the attached VSIX and let us know the result.
Reproduce:
1. Enable FIPS-140-2 mode (secpol.msc => Local Policies => Security Option => System Cryptography: Use FIPS compliant algorithms for encryption, hashing and signing = Enabled)

2. Open VS2012 => open any project
3. Try to add a NuGet package
4. Enjoy the error

Comments: Hi, We cannot repro the issue 100% of the time. So I made the best guess and implemented a fix which hopefully will solve the error you're seeing. Would you be interested in testing it? If yes, please install the attached VSIX and let us know the result.