I know this is an old question, but maybe my answer can help people with the same problem ...
I recently installed Telerik RadControls 2012 Q2 for Silverlight and ran into the same problem. Each time I opened a new instance of Visual Studio, the Telerik controls were duplicated until the toolbar crashed. Looking for an answer, I stumbled upon the forum Spide said. In my case, the reason for this was the WCF RIA Services Toolkit (September 2011). Unfortunately, I need a toolkit, so removing it was not possible.
After another grueling marathon of Google search queries, I came across another solution that does not require removal of the WCF RIA Services toolkit:
Note: These steps include removing keys from the registry. Serious problems can arise if you incorrectly modify the registry using the registry editor or using another method. Change the registry at your own risk.
1) Open your registry and delete the following keys:
The Toolbox registry subkey under HKLM \ SOFTWARE \ Microsoft \ Microsoft SDK \ Silverlight \ v4.0 \ AssemblyFoldersEx \ Ria Services v1.0 Silverlight Libraries
The Toolbox registry subkey under HKLM \ SOFTWARE \ Microsoft \ Microsoft SDK \ Silverlight \ v5.0 \ AssemblyFoldersEx \ Ria Services v1.0 Silverlight Libraries
When you are working with a 64-bit machine, you will need to insert the WOW6432Node after the software in these paths.
2) Now find the keys ToolboxControlsInstallerCache and ToolboxControlsInstaller_AssemblyFoldersExCache in the HKCU \ SOFTWARE \ Microsoft \ VisualStudio \ 10.0 section and delete them.
3) Open Visual Studio and reset the toolbar.
After completing these steps, everything worked as expected, and there were no duplicate controls in the toolbar.
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