The problem isn't the List / IList implicit cast, that works as you would expect:
List<string> myList = new List<string>();
IList<string> myIlist = myList;
The problem is that your IList type doesn't match the List type the Select returns:
private IList<OrganizationItemDetails> _orgLevel3;
Check the type of
x.EntityCode
and you'll probably find it's a string from yoru question title.
Easy way to check:
var collection = orgLevel3.Select(x => x.EntityCode).ToList();
_orgLevel3 = collection;
If you hover over
collection
in VS, it'll tell you what type it expands to.