This may seems a stupid question but is this the correct way?
Perhaps your hardware simply doesn't support shader model 5?
Create the D3D11 device with the debug layer enabled (D3D11_CREATE_DEVICE_DEBUG device flag). This should give you more insight as to what could be wrong.
hr = D3D11CreateDeviceAndSwapChain
I get no "compiler error" when I do this but nothing else really changed o.o