4. Change the configuration to Release for the projects in the solution.
5. Publish the cloud service project, create service package only.
6. Unpack the package to check the setting in web.config. It shows the following setting:
<add key="transformed_key" value="transformed_value"/>
Did you try the same steps?
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Indeed creating a package will apply transformation correctly but running the application from VS2010 will not apply them .
I think the reason is that
In SDK 1.2 it works because running the project from VS2010 actually create a package and deploy it in local Development Fabric.
Otherwise with SDK 1.3 starting the project from VS2010 does not create a package but simpli create a web app in local IIS and in this way all config transformation are not applied.
I just wondering if there is a way to force config transformations to be applied during debugging within VS2010 or if the only solutions is not to use IIS full mode.
And, the transformation issue (if it can be called issue?) is an issue (or feature) within the Visual Web Developer. Even if we are using Visual Web Developer (Visual Studio) to develop regular ASP.NET Applications, while debugging locally the web.config transofmrations
are not applied and we are working with the core web.config. But this topic is totally out of scope of this forum.