Hi Alex,
It took some time to prepare my own example.
I've made the next steps:
1. Create new D365 model + project
2. Create new C# project and add references like in article (i used K:\Packages and it's a shortcut to K:\AosService\PackagesLocalDirectory)
3. Added reference in D365 to C# project
4. Added dll produced by C# project from D365 model bin folder to source control
5. C# project added to source control
6. Opened another environment and got latest version, but in my case, all references in C# project are in place, because K:\Packages folder exists in this environment too. But if I open C# project in another environment where K:\Package doesn't exist it I will get broken reference and i need to re-add it with the correct source.
I guess you are trying to test C# project instead of D365 model, but you will anyway deliver to sandbox\prod environment D365 model and C# dll included in bin folder from step 4. Am I correct?