The fix for the above issue is to create two xml files in WWWRoot folder where IIS is hosted. Those two files are 1. clientaccesspolicy.xml and 2. crossdomain.xml
clientaccesspolicy.xml content is shown below
crossdomain.xml content is shown below
Even after adding the above steps, silverlight application fails, then check the Multipurpose Internet Mail Extension (MIME). We have to include the following MIME extenstion.