Create Jenkins job with Advanced Project Options
Use custom workspace = ./${JOB_NAME##*/}

Note that this is described to drop the folder from job name in http://jenkins:8080/env-vars.html/

Output Logs:
Created workspace 'My-Build-Job-Slave'.
Mapping '$/path/to/tfs/code' to local folder '/path/to/user/workspace/${JOB_NAME##*/}' in workspace 'My-Build-Job-Slave'...
FATAL: hudson.remoting.ProxyException: com.microsoft.tfs.core.exceptions.TECoreException:
TF203003: You cannot specify a wildcard character for this working folder.
The only wildcard character allowed is an '*' to map a Team Foundation Server folder and its immediate child items to your workspace.
java.lang.RuntimeException: hudson.remoting.ProxyException: com.microsoft.tfs.core.exceptions.TECoreException:
TF203003: You cannot specify a wildcard character for this working folder.
The only wildcard character allowed is an '*' to map a Team Foundation Server folder and its immediate child items to your workspace.

Also, seems related to similar parsing problem in https://issues.jenkins-ci.org/browse/JENKINS-29006 and https://issues.jenkins-ci.org/browse/JENKINS-30442