MSBuild doesn't copy references (DLL files) if using project dependencies in solution

Question

I have four projects in my Visual Studio solution (everyone targeting .NET 3.5) - for my problem only these two are important:

1. MyBaseProject &

Answer 1

Another scenario where this shows up is if you are using the older "Web Site" project type in Visual Studio. For that project type, it is unable to reference .dlls that are outside of it's own directory structure (current folder and down). So in the answer above, let's say your directory structure looks like this:

Where ProjectX and ProjectY are parent/child directories, and ProjectX references A.dll which in turn references B.dll, and B.dll is outside the directory structure, such as in a Nuget package on the root (Packages), then A.dll will be included, but B.dll will not.