You can't use vbld_EscapeString from a C# custom action (that is a system script function, which is only available to other script code or user actions written in a scripting language). Simply don't expand macros and script; instead use the raw value of the LASTSTEP_OUTPUT macro:
string strLastStepOutput = Builder.App.get_Macros(MacroTypeEnum.vbldMacroSyst em)["LASTSTEP_OUTPUT"].Value.ToString();
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