Found the below diagnosis here. Originally answered by Steven Cheng. Hope this helps.
PROBLEM DESCRIPTION:
When try using the "Add Web Reference" function in Visual Studio 2005 to create webservice client proxy against multiple webservice endpoints (asmx files) in the same webservice application. And if the webservice application is protected by client authentication which will prompt for client to input credentials, the IDE will report the following exception:
"Unable to cast COM object of type 'System.__ComObject' to interface type 'EnvDTE.IVsExtensibility'. This operation failed because the QueryInterface call on the COM component for the interface with IID '{3C536122-57B1-46DE-AB34-ACC524140093}' failed due to the following error: No such interface supported (Exception from HRESULT: 0x80004002 (E_NOINTERFACE))."
CAUSE:
This is a pure Visual Studio 2005 specific issue, the interal design-time COM object has problem when dealing with service endpoint that will prompt for inputting client credentials.
CURRENT WORK AROUND:
Visit the service description/WSDL document in external webbrowser and save the WSDL document to local file system. And add web reference against the local saved WSDL document in Visual Studio 2005.
Use the WSDL.exe command utility in .net framework to create webservice client proxy externally.