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I could only guess, but it could be that for some reason sgen.exe tries to process an obfuscated assembly, a 'leftover' from previous obfuscation.
The upcoming Assemblur version integrates into VS build process in a slightly different way, which can potentially affect (address) issues such as this one.
Unlike the existing one, this new version does not obfuscate any VS outputs directly (meaning at the place where VS has generated them), thus trying to avoid any conflict that might arise during subsequential builds. (I hope I don't sound too confusing.)
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