Visual Studio changing the way Ctrl-K-D works

In VS 2017:

Tools > Options > Text Editor > C# > Code Style > Formatting > Spacing > Set other spacing options > Ignore space in declaration statements

Are you looking for:

Tools > Options > Text Editor > C# > Formatting > Spacing > Set other spacing options > Ignore space in declaration statements

This is in VS 2010, but i guess 2012 should be somewhat similar.

This functionality has been changed to Ctrl+K, Ctrl+E. This is called Code Cleanup. Click on the "duster" on the bottom of VS page and click "Configure Code Cleanup" to assign specific actions.

Code Cleanup