I have worked it around by suppressing this dll during build in my yaml. Because of the transitive dependency we have on this dll this fix makes sense at the moment.
Below are the steps:

1. Create a folder under the source folder which is the root of your repo.

2. Copy the .gdnsuppress file which BinSkim generates during the build failure and paste it in the above created folder.

3. Create a Copy Files task in your build yaml file to copy this file to the target folder. The target folder would be $(Agent.BuildDirectory)/gdn, given the name of the folder you created at the 1st step is "gdn".

4. Test the build.

This fixed the build failure.