How to troubleshoot Manifest generation problems

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As a support engineer I have been troubleshooting so many cases where Visual Studio 2005 was throwing an error
while generating an external manifest file, while embedding manifest, while using additional manifest files.

It is important to know "How does VS 2005 Embed Native Manifest Files" to troubleshoot this type of issues.
Here is a blog that clearly explains the internals of manifest generation along with parameters that is passed to link.exe, mt.exe
https://blogs.msdn.com/zakramer/archive/2006/05/22/603558.aspx