Visual Studio 2012 doesn't apply changes unless I clean / rebuild the solution first

It seems that when you create a Windows Phone application project that has an empty space in its name (as example "The Project"), Visual Studio breaks and does not correctly track the changes in the project files to invalidate them when building.

I just had this issue and after checking kinds of settings and configurations what finally fixed the issue was I:

• Switch to Release mode and ran the application. Everything rebuilt and worked fine.
• Then switched back to Debug mode and ran the application and everything was back to normal.

My only guess is that somehow Visual Studio 2012 got stuck in an incorrect state and this forced a refresh.