Resolved by adding reference to Application Suite package in the PreProd build pipeline.
1. Updating packages.config file to include reference to ApplicationSuite
<?xml version="1.0" encoding="utf-8"?>
<packages>
<package id="Microsoft.Dynamics.AX.Platform.DevALM.BuildXpp" version="7.0.6253.51" targetFramework="net40" />
<package id="Microsoft.Dynamics.AX.Application.DevALM.BuildXpp" version="10.0.1084.56" targetFramework="net40" />
<package id="Microsoft.Dynamics.AX.ApplicationSuite.DevALM.BuildXpp" version="10.0.1084.56" targetFramework="net40" />
<package id="Microsoft.Dynamics.AX.Platform.CompilerPackage" version="7.0.6253.51" targetFramework="net40" />
</packages>
2. Added a new pipeline variable
Name: AppSuitePackage
Value: Microsoft.Dynamics.AX.ApplicationSuite.DevALM.BuildXpp
3. Added reference to the AppSuitePackage in MSBuild Arguments in Build solution step
/p:BuildTasksDirectory="$(NugetsPath)\$(ToolsPackage)\DevAlm"
/p:MetadataDirectory="$(MetadataPath)"
/p:FrameworkDirectory="$(NuGetsPath)\$(ToolsPackage)"
/p:ReferenceFolder="$(NuGetsPath)\$(PlatPackage)\ref\net40;$(NuGetsPath)\$(AppPackage)\ref\net40;$(MetadataPath);$(Build.BinariesDirectory);$(NuGetsPath)\$(AppSuitePackage)\ref\net40"
/p:ReferencePath="$(NuGetsPath)\$(ToolsPackage)"
/p:OutputDirectory="$(Build.BinariesDirectory)"