Your situation is exactly the situation that WinSxS should solve. It should work.
Either: manifest files point to the same version, or one of the manifest files is not properly embedded, or
WinSxS co-assembly was installed with a configuration policy that automatically redirects requests for v1.0 to v1.1
Some clarification needed: App.exe and b.dll are implicitly related to a.dll? Or they load it through LoadLibrary.
If B.DLL loads A.DLL explicitly using LoadLibrary, then you need to add ISOLATION_AWARE_ENABLED to your definitions in front of the processor to make sure that the LoadLibrary calls made by B.DLL look in the correct activation context. Otherwise, they will be made in the context of the default activation context that was created by the EXE manifest.
Chris becke
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