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The Telerik UI for ASP.NET AJAX does not offer any official support for Delphi Prism.
You can try to replace the <telerik:RadScriptManager with <asp:ScriptManager> and test again.
I installed Visual Studio 2012 just to check any compatibility with Delphi Prism and Telerik but wasn't able to locate any installer of Delphi Prism in the Visual Studio marketplace. Can you share the steps to install this add-on?
Meanwhile, try to remove the references to the Telerik assemblies and to re-add them to point to the assemblies from the same installation. If the project is running .NET 4.0, go to the bin40 installation folder and obtain the Telerik.Web.UI.dll from it.