Did you get to the bottom of this?
I also package Phidget22.dlls manually and always have problems if there is Phidgets Control Panel installed or when upgrading my own software so your last post on potential dependency on Phidgets CP is interesting.
It feels as if Phidget APIs have preference to link dynamically to either a) whatever is installed with the Phidget control panel or, failing this and in case of upgrading the software, b) whatever was installed with previous version of the software (this could be the set-up routine not detecting change in phidget22.dll files that are being upgraded). I basically then get mismatch of dll versioning errors.
My workaround is not to have Phidgets CP installed and to uninstall software before upgrade rather than do normal upgrade. I use simple VS Installer Projects setup.