The Continue action, as you have found won't cut it as no matter what avast won't allow an infected/detected file to be executed, even if you chose continue/no action, etc. (it simply isn't going to let you get infected by allowing you to run the file, assuming it isn't an FP as in this case).
Don't exclude the complete TF folder as that could leave a hole in your security, you should just exclude the specific file being detected.