Using EnvInject plugin,
[ X ] Prepare an environment for the run
Properties Content : branch=main_dev
Using SCM: TFS
TFVC Project path:
works:$/BT/ITSuppt/sampleApplication/scm_demo
fails: $/BT/ITSuppt/sampleApplication/${branch}

Per EnvInject Plugin:

• Executes a setup script before or/and after a SCM checkout for a run
• Injects environment variables before or/and after a SCM checkout for a run

Variable is not being resolved before processing.

Note: performing a similar task using TFS hosted Git repo (and variable in branch specifier)  works.

FATAL: hudson.remoting.ProxyException: com.microsoft.tfs.core.exceptions.TECoreException: TF10122: The path '$/path/to/sampleApplication/${branch}' contains a '$' at the beginning of a path component. Remove the '$' and try again.
hudson.remoting.ProxyException: com.microsoft.tfs.core.ws.runtime.exceptions.SOAPFault: TF10122: The path '$/path/to/sampleApplication/${branch}' contains a '$' at the beginning of a path component. Remove the '$' and try again.
at com.microsoft.tfs.core.ws.runtime.client.SOAP12Service.examineResponseDOMForFault(SOAP12Service.java:117)
at com.microsoft.tfs.core.ws.runtime.client.SOAPService.examineBodyForFault(SOAPService.java:987)
at com.microsoft.tfs.core.ws.runtime.client.SOAPService.executeSOAPRequestInternal(SOAPService.java:665)
at com.microsoft.tfs.core.ws.runtime.client.SOAPService.executeSOAPRequest(SOAPService.java:444)
at ms.tfs.versioncontrol.clientservices._03._RepositorySoap12Service.queryHistory(_RepositorySoap12Service.java:1503)
at com.microsoft.tfs.core.clients.versioncontrol.internal.WebServiceLayer.queryHistory(WebServiceLayer.java:1573)
at com.microsoft.tfs.core.clients.versioncontrol.internal.WebServiceLayerLocalWorkspaces.queryHistory(WebServiceLayerLocalWorkspaces.java:1254)
at com.microsoft.tfs.core.clients.versioncontrol.VersionControlClient.queryHistory(VersionControlClient.java:4264)
at hudson.plugins.tfs.model.MockableVersionControlClient.queryHistory(MockableVersionControlClient.java:255)
at hudson.plugins.tfs.commands.RemoteChangesetVersionCommand.call(RemoteChangesetVersionCommand.java:66)
at hudson.plugins.tfs.commands.RemoteChangesetVersionCommand.call(RemoteChangesetVersionCommand.java:34)
at hudson.remoting.UserRequest.perform(UserRequest.java:208)
at hudson.remoting.UserRequest.perform(UserRequest.java:54)
at hudson.remoting.Request$2.run(Request.java:360)
at hudson.remoting.InterceptingExecutorService$1.call(InterceptingExecutorService.java:68)
at java.util.concurrent.FutureTask.run(FutureTask.java:266)
at java.util.concurrent.ThreadPoolExecutor.runWorker(ThreadPoolExecutor.java:1149)
at java.util.concurrent.ThreadPoolExecutor$Worker.run(ThreadPoolExecutor.java:624)
at java.lang.Thread.run(Thread.java:748)
Caused: hudson.remoting.ProxyException: com.microsoft.tfs.core.exceptions.TECoreException: TF10122: The path '$/path/to/sampleApplication/${branch}' contains a '$' at the beginning of a path component. Remove the '$' and try again.

This is related to:https://issues.jenkins-ci.org/browse/JENKINS-48443