Visual Studio automation: Automation extension has crashed. click this balloon to reload the extension

Our team uses Visual Studio 2015 for developing a .net application which we also use for creating automated test scripts. When attempting to run automated tests from Visual studio, we are encountering a browser based error.

“Automation extension has crashed. click this balloon to reload the extension” and when clicking on it “chrome is being controlled by automated test software”. The chrome version and the driver used are the latest (64.0.3282.140 (64 bit) and driver is 2.35). I tried with older version of driver with no luck. I run the tests with admin privilege after breaking the firewall. Any suggestions would be helpful, thanks.