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I just installed a new machine with VS2017 and I got the same problems I had years ago when I first needed to get ProGuard running on my old machine with VS2015. So I thought I'll open a bug because it seems nobody at Xamarin ever uses ProGuard at all or you would've recognized this yourself.
1) ProGuard is installed to C:\Program Files (x86)\Android\android-sdk\tools\proguard
But unfortunately ProGuard fails to run when it is installed in a folder which contains a space. So "Program Files (x86)" does not work. Visual Studio or MSBuild both raise "C:\Program Files(Access Denied)" errors.
There are several threads in the forum which describe how to handle this. I followed https://forums.xamarin.com/discussion/comment/147029/#Comment_147029 and created a symbolic link to the android-sdk with
mklink /j C:\android-sdk "C:\Program Files (x86)\Android\android-sdk"
Then I needed to change the path to the SDK in Visual Studio / Options / Xamarin.
But you could also install the Android SDK in a different folder from the start.
2) an old version of ProGuard is installed
The installed version doesn't run with Android 7 anymore. I think 6 failed already. So I needed to download the most recent version from https://sourceforge.net/projects/proguard/files/ and use that instead. But beware that you copy the proguard*.txt files to the new folder or the next error will bite you. That information came from Xamarins own Jon Douglas http://stackoverflow.com/a/39514706 btw., so you already know what to do.
Every user who wants to use ProGuard with Xamarin runs into those problems. Why don't you just change your installation to do that by default?
And when you're already into changing the setup procedure, why don't you ask James Montemagno what else has to be done to get Xamarin.Android ready to work AFTER the setup routine. http://motzcod.es/post/158155898027/setting-up-vs-2017-for-xamarin-dev
I would expect that I install VS with Xamarin and I can start coding. That works well with pure VS for Windows, but not with Xamarin.Android.
*** This bug has been marked as a duplicate of bug 32861 ***