I'm posting this question so I can document the solution as I found it very tricky and time consuming to solve.
I'm using Laurent Bugnion's excellent MVVM Light Toolkit in a Silverlight 4 project and I'm using his ViewModelLocator pattern with the Microsoft.Practices.ServiceLocation.ServiceLocator to load design time models for Blendability. Initially loading the Views up in Expression Blend 4 was working and the design time data binding was great. This stopped working at some point without any error message in Blend at all.
I used Visual Studio 2010 SP1 to attach to Blend.exe to debug the issue. The EntryPointNotFoundException (Entry point was not found) exception was being thrown at this line of code:
return ServiceLocator.Current.GetInstance<ExampleViewModel>();
Strangely enough, I was able to load the same View in the Visual Studio XAML Designer successfully with my design time data binding working correctly. I used another Visual Studio instance to attach the debugger to the Visual Studio instance hosting the XAML Designer and was able to confirm that the ServiceLocator call was executing successfully.
The exception detail (stack trace, InnerExcetion etc) did not give me any further clue to the problem and various Internet searches for the unhelpful error emssage failed to shed any further light.
I eventually got lucky by using the Visual Studio Immediate Window to execute part of the line of code that was causing the problem and got a much better error message:
?ServiceLocator.Current
The type 'Microsoft.Practices.ServiceLocation.ServiceLocator' exists in both 'Microsoft.Practices.ServiceLocation.dll' and 'Microsoft.Practices.ServiceLocation.dll'
Comparing the changeset to previously working code I noticed that I had added a reference to GalaSoft.MvvmLight.Extras.SL4 in a separate Unit Test Framework for Silverlight project (which references the UI project). This test project was referencing the assembly from C:\Program Files (x86)\Laurent Bugnion (GalaSoft)\Mvvm Light Toolkit\Binaries\Silverlight4 where as the UI project was referencing it from ..\packages\MvvmLightLibsPreview.4.0.0\lib\SL4. I had used the nuget package MvvmLightLibsPreview to add MVVM Light to the client project.
The Blend Results - Errors and Output Windows did not show any error message at any point. Obviously there is no real answers required unless there are some Blend trouble shooting techniques which would have helped my figure out the problem faster.