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Dynamics365 PluginRegistration tool throws exception "System.IO.FileLoadException: Could not load file or assembly 'file:///C:\Users\...\xyz.dll' or one of its dependencies."

If you are facing below highlighted error detail with PluginRegistration meaning you are trying to register signed/unsigned dll download over the network. 
Unhandled Exception: System.IO.FileLoadException: Could not load file or assembly 'file:///C:\Users\\...\xyz.dll' or one of its dependencies. Operation is not supported. (Exception from HRESULT: 0x80131515)   at System.Reflection.RuntimeAssembly._nLoad(AssemblyName fileName, String codeBase, Evidence assemblySecurity, RuntimeAssembly locationHint, StackCrawlMark& stackMark, IntPtr pPrivHostBinder, Boolean throwOnFileNotFound, Boolean forIntrospection, Boolean suppressSecurityChecks)   at System.Reflection.RuntimeAssembly.InternalLoadAssemblyName(AssemblyName assemblyRef, Evidence assemblySecurity, RuntimeAssembly reqAssembly, StackCrawlMark& stackMark, IntPtr pPrivHostBinder, Boolean throwOnFileNotFound, Boolean forIntrospection, Boolean suppressSecurityChecks)   at System.Reflection.RuntimeAssembly.InternalLoadFrom(String assemblyFile, Evidence securityEvidence, Byte[] hashValue, AssemblyHashAlgorithm hashAlgorithm, Boolean forIntrospection, Boolean suppressSecurityChecks, StackCrawlMark& stackMark)   at System.Reflection.Assembly.LoadFrom(String assemblyFile)   at Microsoft.Crm.Tools.Libraries.CrmAssemblyReader.LoadAssembly(String path)   at Microsoft.Crm.Tools.Libraries.CrmAssemblyReader.RetrievePluginsFromAssembly(String path)   at Microsoft.Crm.Tools.Libraries.CrmAssemblyReader.RetrievePluginsFromAssembly(String path)   at Microsoft.Crm.Tools.Libraries.RegistrationHelper.RetrievePluginsFromAssembly(String pathToAssembly, String appPath)   at Microsoft.Crm.Tools.AssemblyRegistration.PluginRegistrationViewModel.BtnLoadAssemblyClicked()Inner Exception: System.NotSupportedException: An attempt was made to load an assembly from a network location which would have caused the assembly to be sandboxed in previous versions of the .NET Framework. This release of the .NET Framework does not enable CAS policy by default, so this load may be dangerous. If this load is not intended to sandbox the assembly, please enable the loadFromRemoteSources switch. See http://go.microsoft.com/fwlink/?LinkId=155569 for more information.


Quick fix would be to unblock the dll as shown in the below screenshot: 

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You might be here because you are getting this misleading error "Assembly must be fully signed (not delay signed)" although you have successfully generated signed dll either locally or from VSO server. I am documenting this specific error scenario here as I couldn't find anything available over the internet.     I had generated fully signed dll using our VSO build definition. When I am uploading this dll to PluginRegistration tool using the assembly “Update” option, it kept throwing the below exception: Unhandled Exception: System.ServiceModel.FaultException`1[[< >]]: Action failed for assembly << TRIMMED >>: Assembly must be fully signed (not delay signed). Detail: … Earlier we were able to update the build generated assembly right from this tool. We are using the task "ESRP CodeSigning" for code signing process. When I checked the history of this definition someone had modified it’s configuration.  So during update...