Azure Git Deployment Could not find file [Project].dll.licenses failure

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We have an ASP.NET web application project in BitBucket which has a reference to a Class Library using Telerik Reporting. Telerik Reporting has a license associated (licenses.licx file).

Azure deployment fails with the message:

CSC : error CS1566: Error reading resource '[Project].dll.licenses' -- 'Could not find file 'D:\home\site\repository\src\[Project]\obj\Release\[Project].dll.licenses'.'
Failed exitCode=1, command="D:\Program Files (x86)\MSBuild\14.0\Bin\MSBuild.exe" "D:\Home\[PathTo].csproj" /nologo /verbosity:m /t:Build /t:pipelinePreDeployCopyAllFilesToOneFolder /p:_PackageTempDir="D:\local\Temp\8d2bd89fc1c1e79";AutoParameterizationWebConfigConnectionStrings=false;Configuration=Release /p:SolutionDir="D:\home\[PathTo]\"

This existing question *.dll.licenses file in obj directory not created with msbuild in TeamCity and linked MSDN forum post seem to resolve this by installing extra tools - but I don't believe that would be an option in Azure?

The licenses.licx file in the class library is also set as an Embedded Resource which apparantly trips it up if not set correctly.

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We were able to resolve the problem by removing the licenses.licx file from the repository (and ignoring it).