Visual Studio designer not working (NullReferenceException) in Windows Phone solution after WP8 SDK installation.

I watched the Build keynote last week on a big screen together with colleagues at Jayways Copenhagen office. One of the highlights was the WP8 SDK release. You can read a great introduction to the most significant API additions and changes at the Nokia Dev Wiki. I installed the SDK this weekend but ran into a frustrating problem when opening one of my WP7 solutions in Visual Studio 2012.

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