Upgrade from AX2012 R2 to R3 - Assembly is not referenced


I have upgraded the application from R2 to R3. When I open the AX application, it throws an error “Assembly containing type Microsoft.Dynamics.AX.Framework.Tools.ModelManagement.AxUtilConfiguration is not referenced. Object ‘CLRObject’ could not be created”. It just keeps on generating the same error even if you simply click on anywhere in the application.

After the upgrade followed as per MS guidelines https://technet.microsoft.com/en-us/library/jj733502.aspx, it has compilation errors, hence full CIL couldn’t be generated (I tried). Compilations errors are not an issue as I would expect it to happen. But the problem is the error mentioned above.

I have checked the forum related to this error but nothing matches my case. My guess is some dll is missing or not registered properly during upgrade. Any help is appreciated.