Cannot connect to context: Runtime binder and cannot find file EntityFramework errors

Just setting up Linqpad on new computer. Had no problems on another computer. But this is what happens on my new machine, with a solution with a DbContext that has no problems (i.e. compiles and runs in VS)
If I try to Add the context to linqpad and clicking Test, this result in either RuntimeBinderException: 'object' does not contain a definition for 'Connection' (if I use a config file which just includes the connection string for the System.Data.SqlClient, or (if I use the project's config file) TypeInitializerException, basically saying that it cannot find EntityFramework (even though the Dlls are present in the DbContext bin folder). Curiously, if I exit the Connection dialogue, the Context has been created, but if I try to access it in any way I get an AmbiguousMatchException.
Has anyone experienced this, or have any hints for investigating. I'm stumped.
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