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When an application is created and compiled for debugging, Visual Studio will create two *.exe files. The first is [Appname].exe; the second is [Appname].vshost.exe. The second application is used by Visual Studio for debugging. If the application is created to run as a service, the debug file will not be created. If the project is distributed, it will fail to load the license file because it is not in the debug environment. The solution and best practice is to always compile for release when distributing the application.