Microsoft Dynamics 365 Developer Toolkit and Dynamics CRM & 365 Developer Extensions are great Dynamics 365 development accelerators available in the Visual Studio Marketplace. Still, these tools are not compatible with Visual Studio 2017, which is the latest release of VS. This is a workaround that you can make use of these tools with Visual Studio 2017.
Dynamics 365 Developer Extensions is a great replacement for Dynamics 365 Developer Toolkit, steps of the workaround has been given below for both the tools.
Step 1: Download Toolkit or Extensions from following links.
Microsoft Dynamics 365 Developer Toolkit
Dynamics CRM & 365 Developer Extensions
https://marketplace.visualstudio.com/items?itemName=JLattimer.DynamicsCRMDeveloperExtensions
Step 2: Extract the .vxis file as follows.
Extracting Microsoft Dynamics 365 Developer Toolkit vsix file

Extracting Dynamics CRM & 365 Developer Extensions vsix file

Step 3: Exact the .vxis file as follows.
Microsoft Dynamics 365 Developer Toolkit
Open extension.vsixmanifest in a text editor and change the following;
Change version 11.0,14.0 to 11.0,15.0 as follows:
Dynamics CRM & 365 Developer Extensions
Open extension.vsixmanifest in a text editor and change the following;
Change version 11.0,14.0 to 11.0,15.0 as follows:
Step 4: Exact the .vxis file as follows.
Zip all the files in the folders and change the zip file name and the extension back.
E.g.
Microsoft.CrmDeveloperTools.vsix
CRMDeveloperExtensions_v1.3.4.1.vsix
Step 5: Install vsix files
During the installation it will ask a question as follows. Just click on “Yes” and continue.

Dynamics 365 Developer Toolkit\Extensions displayed under Visual Studio Extensions and Updates.

Step 6: Set Tool Paths
Paths to core assemblies and tools need to be done for the Dynamics 365 Developer Toolkit extension in Visual Studio.
Download Dynamics 365 SDK v8.x from https://www.microsoft.com/en-us/download/details.aspx?id=50032
Install MicrosoftDynamics365SDK.exe and it will extract core assemblies, tools etc…
Set the tool paths as follows;
Tools > Options

You are missing the part where you need to configure the developer toolkit paths https://community.dynamics.com/enterprise/b/dynamics365fordevelopers/archive/2017/03/07/install-dynamics-365-developer-toolkit-with-visual-studio-2017
Developer Toolkit & Extensions for VS2017 is the product of the dynamic 365 and it is best known for the gaming toolkit. you can feel something different in this while gaming.
http://gamingtoolkit.net/
I can’t get this to work using the Community Edition – is it only available for Pro upwards?
I have followed each step using Enterprise Edition and it is not working
In order to get this to work on 2019 I changed the range up to 18.0, as the current latest patch is 16.2.4 and it goes min/max so a max of 16.0 wasn’t allowing it.
For visual studio 2019+ make version 11.0,14.0 to 11.0,17.0