The library itself references an executable
This seems unlikely, surely the EXE project references the library.
The problem is the compiler throws a warning
This seems unlikely, this looks like a warning displayed by MSBuild, not the compiler.
Warning is of type MSB3277
This warning normally has a lot more useful information, you need to get your machine fixed if this is all you see. Otherwise do try to follow the hint displayed in the warning and change the build verbosity. Use Tools > Options > Projects and Solutions > Build and Run > "MSBuild project build output verbosity" > change to Diagnostic.
Use Build > Rebuild and you'll now get a trace in the Output window. You now ought to see a diagnostic message that resembles something like:
There was a conflict between "foobar, Version=1.42.0.0, Culture=neutral, PublicKeyToken="null" and "foobar, Version=1.666.0.0, Culture=neutral, PublicKeyToken="null".
"foobar, Version=1.42.0.0, Culture=neutral, PublicKeyToken="null" was chosen because it was primary and "foobar, Version=1.666.0.0, Culture=neutral, PublicKeyToken="null" was not.
Or some such verbiage, obviously the exact text you see is very important to decide what to do next and should never be omitted when you ask for help from anybody.
In general, this kind of warning is displayed when you have projects that have a dependency on a library but not the same version of the library. That's a problem when they are not installed in the GAC, the DLLs are copied to your build directory and one will overwrite the other. Only one of them can survive.
MSBuild was written to deal with this problem, it will choose one of them based on the "best guess" which one might cause the least trouble. It must tell you about this, not the kind of warning you should ever suppress because one of your projects is going to get a version of the library that it did not expect. Note how the <bindingRedirect>
you used suppressed the normally fatal runtime error this causes. It is pretty unhealthy and needs to be thoroughly tested.
The only decent way to get rid of the warning is to change the dependency that the project uses so that the versions agree. Do beware that this is not always under your control, it might not be a library that you created yourself. Particularly an issue with Nuget libraries. In which case you do have to byte the bullet. If company policy forbids checking in projects that build with this warning (and do keep in mind that this is not a compiler warning) then the only reasonable thing you can do is to stop using the 3rd party library.