I have constructed an application that reads XML content and in the XML content it uses ENTITY components (file references) to reference other XML files. This worked when we were building with .NET Framework 4.0, but it stopped working in 4.5 and is still not working in 4.7.2. This is a critical issue for releasing a product of ours. I have attached a sample App that demonstrates the problem. See the instructions.txt file included in the zip for workflows/information.
XMLEntityReference.zip