Cannot process 'StudentGrantsWF.xaml' because it is not an EDMX file

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I am trying to add a new workflow activity but it is giving me this error:

Cannot process 'StudentGrantsWF.xaml' because it is not an EDMX file.

I have two other activities, but they were added before this project was added to this solution that has four class library projects and three web applications inside it.

I am using Entity Framework 6.1.1.

[Edit] After changing the name the error disappeared but it appeared again when I tried referencing the project that has this activity in the web application project that has entity framework.

Any help is much appreciated!

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Asmaa Ayman On BEST ANSWER

It happened that I was searching for the error and find this question Cannot process 'reportname.rdlc' because it is not an EDMX file

one of the answers pointed out that it might be a naming clash specifically if I have an entity that has a similiar name, though not exact name.

Changing the name worked for me but I had another problem as edited in the question! Yet I hope this solution also helps someone!