Visual Studio 2013 produces garbled/corrupted/wrong-encoded html

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I have a MVC4 Web project with Razor, which works fine in VS2012. In VS2013, after clean-rebuild, the same web project produce html with encoding issues. its looks like this. Lots of ��� (question mark characters in a dark diamond)

I am pretty sure its VS2013 that is the cause - I have tried re-installing IIS, recreating the websites, disabling gzip compression, disabling caching, deleting temporary compiled files etc etc etc... I am using VS2013 Pro Edition in Windows 8.1.

If I switch back to VS2012 and clean-rebuild the response is back to normal.

I have also tried the <globalization> element in project, and meta Content-Type and same with http headers, various combinations of content type values etc, to fix encoding in VS2013 - all to no effect.

Any solutions?

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