I am having exactly the same bug problem. I go to create a new Basic C++ project in 4.16 and starts compiling part way then gives up and gives my the below error message. UE4 C++ project creation wizard is totally broke. UE4 BP Creation wizard appear to work just as they should.
ERROR MESSAGE SAYS:
The project could not be compiled. Would you like to open it in Visual Studio?
Running C:/Program Files/Epic Games/UE_4.16/Engine/Binaries/DotNET/UnrealBuildTool.exe Cpp_doesworkornot Development Win64 -project=“F:/Users/Justin Jahn/Documents/Unreal Projects/Cpp_doesworkornot/Cpp_doesworkornot.uproject” -editorrecompile -progress -NoHotReloadFromIDE
Performing full C++ include scan (building a new target)
Creating makefile for Cpp_doesworkornot (no existing makefile)
@progress push 5%
Parsing headers for Cpp_doesworkornotEditor
Running UnrealHeaderTool “F:\Users\Justin Jahn\Documents\Unreal Projects\Cpp_doesworkornot\Cpp_doesworkornot.uproject” “F:\Users\Justin Jahn\Documents\Unreal Projects\Cpp_doesworkornot\Intermediate\Build\Win64\Cpp_doesworkornotEditor\Development\Cpp_doesworkornotEditor.uhtmanifest” -LogCmds=“loginit warning, logexit warning, logdatabase error” -Unattended -WarningsAsErrors -installed
Reflection code generated for Cpp_doesworkornotEditor in 8.9093516 seconds
@progress pop
Performing 8 actions (4 in parallel)
[3/8] Resource PCLaunch.rc
[2/8] Resource ModuleVersionResource.rc.inl
SharedPCH.Engine.cpp
Cpp_doesworkornot.cpp
Cpp_doesworkornot.generated.cpp
Cpp_doesworkornotGameModeBase.cpp
[7/8] Link UE4Editor-Cpp_doesworkornot.dll
[8/8] Link UE4Editor-Cpp_doesworkornot.lib
LINK : fatal error LNK1181: cannot open input file ‘ws2_32.lib’
Creating library F:\Users\Justin Jahn\Documents\Unreal Projects\Cpp_doesworkornot\Intermediate\Build\Win64\UE4Editor\Development\UE4Editor-Cpp_doesworkornot.lib and object F:\Users\Justin Jahn\Documents\Unreal Projects\Cpp_doesworkornot\Intermediate\Build\Win64\UE4Editor\Development\UE4Editor-Cpp_doesworkornot.exp
ERROR: UBT ERROR: Failed to produce item: F:\Users\Justin Jahn\Documents\Unreal Projects\Cpp_doesworkornot\Binaries\Win64\UE4Editor-Cpp_doesworkornot.dll
Total build time: 51.40 seconds (Local executor: 0.00 seconds)