Project upgrade 2.0 -> 2.1 fails on VS 2012


Copy the solution from \pytools\Python\Test Projects\MMD\MMDTest and open it in VS 2012. A project upgrade happens, and only warning is shown for the Python project in the upgrade log, but it is still "(unavailable)" in Solution Explorer, and an error message for ArgumentNullException pops up. Right-clicking and reloading it triggers the upgrade again, with the same result.

Call stack for first-chance exception:
    mscorlib.dll!string.Format(System.IFormatProvider provider, string format, object[] args) Line 3324 + 0x32 bytes    C#
>   Microsoft.PythonTools.dll!Microsoft.VisualStudioTools.Project.SR.GetString(string name, object[] args) Line 241 + 0x22 bytes    C#
    Microsoft.PythonTools.dll!Microsoft.VisualStudioTools.Project.ProjectFactory.Microsoft.VisualStudio.Shell.Interop.IVsProjectUpgradeViaFactory4.UpgradeProject_CheckOnly(string bstrFileName, Microsoft.VisualStudio.Shell.Interop.IVsUpgradeLogger pLogger, out uint pUpgradeRequired, out System.Guid pguidNewProjectFactory, out uint pUpgradeProjectCapabilityFlags) Line 611 + 0x33 bytes   C#