Using VS 2013 Update 4. Office tools Udpated. SharePoint 2013 installed locally.
I can browse the site as expected.
However, when I go to VS and try to create a solution I get this

I also cannot add an SP connection from the Server Explorer in VS. I get a popup saying "A task was cancelled".
This is a new dev VM to replace an existing one. It has SP, AD and VS all installed.
It doesn't seem to be an SP issue. I have checked the service account, app pools, database permissions etc...All good there.
There is nothing in the event log and fiddler doesn't record any attempt to ping the site.
I think it has something to do with vssphostv5.exe. I cannot find it in the task manager or process explorer. I tried to run it manually and nothing. I also tried to repair VS (this is a fresh install and the first project I am trying to create).
Despite taking hours to repair...the problem still persists.
Any ideas? I'm out!