I'm glad that you were able to resolve your issue and thank you for posting your solution so that others experiencing the same thing can easily reference this! Since the Microsoft Q&A community has a policy that The question author cannot accept their own answer. They can only accept answers by others, I'll repost your solution in case you'd like to "Accept" the answer.
Issue:
You try to convert your V1 function app to a V4 .net framework 4.8 isolated function app. (contains HTTP trigger functions) and observed that when you run it locally or publish it to Azure and invoke the HTTP endpoint through postman you get below error: Could not load file or assembly 'file:///C:\Test\ConversionProject.dll or one of its dependencies. The system cannot find the file specified.
Solution:
You found the github issue : https://github.com/Azure/azure-functions-dotnet-worker/issues/2072 and you rolled back Microsoft.Azure.Functions.Worker.Sdk to 1.15.1 from 1.16.2 and confirmed that the issue is resolve. When using latest package when you set FunctionsEnableWorkerIndexing attribute in the project file as below which resolves the issue with latest package. <FunctionsEnableWorkerIndexing>False</FunctionsEnableWorkerIndexing>
Thank you again for your time and patience throughout this issue.