Error While creating new list - Silverlight error

Recently after creating a new Site collection, users reported that they can not create a new list/document library in the Site collection. The error is as displayed below:

 

After verifying that it had nothing to do with Silverlight of list templates, I figured out that one of the setting in web application is causing this.You can change the setting as shown below to get rid of this problem.

Once these steps are followed you should be able to create new list without any issue.