Thanks for the links.
Let me explain the whole scenario that happened.
The deployed code is a custom UI that is built in C# (.NET) and was working fine as intended in development machine. Once the package was deployed to target, it didn’t work as it was missing the Common DLL, I was able to figure out this issue by comparing the GAC on development and target machines. By copying the NI Common DLL from development PC to Target GAC, the error persisted and the problem was it was referring to Common DLL version 22.214.171.124 instead of 126.96.36.199 that I had copied to target GAC.
To overcome these errors, I now packaged the deployment (installer) with the development PC version 188.8.131.52 along with application and since now the target is referring to packaged DLL, which on installation updated the GAC (on target machine with the version in installer and policy file), with this the problem is solved and the installer works fine now.