The files listed in Project Properties > Publish > Application Filesare automatically compiled by Visual Studio. Your application must require these DLLs. If they are not already registered on the computer, then installing them on excludedwill lead to the error described by you.
You must either install the builds in Included, or if this adds an unacceptable amount of overhead to your distribution, you can go to Project Properties > Publish > Prerequisitesand addSQL Server 2012 Express LocalDB
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