I am trying to deploy a SharePoint solution using Visual Studio. This solution references a AjaxControlToolkit.dll and upon deploying, I get following error:

Cannot add the specified assembly to the global assembly cache: AjaxControlToolkit.dll

I have searched about this issue and found one Powershell to deploy that DLL into the GAC which worked successfully but when I deploy the solution again from VS, it throws this error. Cannot remove DLL from my project either because it won't compile. I am part of Administrators group on this machine and running VS as administrator.

How do I fix this issue?

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