I figured out my misunderstanding of the syntax. I was trying to add filtered as a modification of svn. Here is what is now working. I wish I could find the StackOverflow page that pointed me in the right direction on this but that is what finally gave me the clarity on this. Hopefully this helps someone else as the other page did me. It is not very clear how we are supposed to handle multi source control types.
<sourcecontrol type="multi">
<sourceControls>
<multi>
<sourceControls>
<filtered>
<sourceControlProvider type="svn" autoGetSource="false">
<executable>$(SVN_PATH)</executable>
<workingDirectory>$(CHECKOUT_ABS_DIR)\module2</workingDirectory>
<timeout units="hours">2</timeout>
<trunkUrl>$(SUBVERSION_URL2)</trunkUrl>
</sourceControlProvider>
<exclusionFilters>
<pathFilter>
<pattern>**/VersionInfo.txt</pattern>
</pathFilter>
</exclusionFilters>
</filtered>
<filtered>
<sourceControlProvider type="svn" autoGetSource="false">
<executable>$(SVN_PATH)</executable>
<workingDirectory>$(CHECKOUT_ABS_DIR)\module1</workingDirectory>
<timeout units="hours">2</timeout>
<trunkUrl>$(SUBVERSION_URL1)</trunkUrl>
</sourceControlProvider>
<exclusionFilters>
<pathFilter>
<pattern>**/VersionInfo.txt</pattern>
</pathFilter>
</exclusionFilters>
</filtered>
</sourceControls>
</multi>
</sourceControls>
</sourcecontrol>