I was getting this error message in Visual Studio 2008 when adding a custom activity to an existing workflow.
Solution
This worked for me, your mileage, may and probably will vary.
It was necessary for me to un-gac the workflow project, then the custom activities could be added to the design surface as expected.
Thank you! Saved me a lot of time!
Thank you so much! I’ve been banging my head about this for the whole day…
How can one develop for sharepoint then, since the workflow libraries go into GAC everytime you deploy?