That's really strange - I have just tested this functionality on several local projects, and it seems to show consistently working behavior. However, there is one thing you might need to take into account - when modifying the Resource labels, sometimes it's necessary for the application to be restarted in order for the new resource entries to be loaded, instead of the already cached ones - that is, the change might have persisted, but the old value can be still showing up. Please try restarting the application, and let us know if any problems persist.
the Telerik team
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