Autocomplete issue with ASP.NET MVC 5

Question 1

Aside from your trailing } it seems to work.

http://jsfiddle.net/38uGv/

Best check the browser downloads with fiddler and don't forget to add BundleTable.EnableOptimizations = false; at the bottom of your App_Start\BundleConfig.cs file RegisterBundles method. That setting will stop any combining/minification of JS files.

Question 2

I found what is wrong... Damn it!

So final code should look like

<!DOCTYPE html>
<html>
<head>
    <meta charset="utf-8" />
    <meta name="viewport" content="width=device-width, initial-scale=1.0">
    <title>@ViewBag.Title - My ASP.NET Application</title>

    @Scripts.Render("~/bundles/modernizr")   
    @Styles.Render("~/Content/css")

    @*<script type='text/javascript' src='http://code.jquery.com/jquery-1.8.3.js'></script>*@
    @*<script type="text/javascript" src="http://code.jquery.com/ui/1.9.2/jquery-ui.js"></script>*@
    @*<link rel="stylesheet" type="text/css" href="http://code.jquery.com/ui/1.9.2/themes/base/jquery-ui.css">*@

    <link href="~/Content/themes/base/jquery-ui.css" rel="stylesheet" />
    @Scripts.Render("~/bundles/jquery")
    @Scripts.Render("~/bundles/jqueryui")
    @Scripts.Render("~/bundles/bootstrap")
    <script>
        $(document).ready(function(){

            var availableTags = [
                "ActionScript",
                "AppleScript",
                "Asp",
                "BASIC",
                "C",
                "C++",
                "Clojure",
                "COBOL",
                "ColdFusion",
                "Erlang",
                "Fortran",
                "Groovy",
                "Haskell",
                "Java",
                "JavaScript",
                "Lisp",
                "Perl",
                "PHP",
                "Python",
                "Ruby",
                "Scala",
                "Scheme"
            ];
            $("#autocomplete").autocomplete({
                source: availableTags
            });
        });

    </script>

</head>
<body>
    <div class="navbar navbar-inverse navbar-fixed-top">
        <div class="container">
            <div class="navbar-header">
                <button type="button" class="navbar-toggle" data-toggle="collapse" data-target=".navbar-collapse">
                    <span class="icon-bar"></span>
                    <span class="icon-bar"></span>
                    <span class="icon-bar"></span>
                </button>
                @Html.ActionLink("Application name", "Index", "Home", null, new { @class = "navbar-brand" })
            </div>
            <div class="navbar-collapse collapse">
                <ul class="nav navbar-nav">
                    <li>@Html.ActionLink("Home", "Index", "Home")</li>
                    <li>@Html.ActionLink("About", "About", "Home")</li>
                    <li>@Html.ActionLink("Contact", "Contact", "Home")</li>
                </ul>
                @Html.Partial("_LoginPartial")
            </div>
        </div>
    </div>
    <div class="container body-content">
        @RenderBody()
        <hr />
        <footer>
            <p>&copy; @DateTime.Now.Year - My ASP.NET Application</p>
        </footer>
    </div>

    @RenderSection("scripts", required: false) 
</body>
</html>

The important thing is that you have relocate

  @Scripts.Render("~/bundles/jquery")
    @Scripts.Render("~/bundles/jqueryui")
    @Scripts.Render("~/bundles/bootstrap")

from the BODY tag to HEADER!

And BundleConfig should look like

 public class BundleConfig
    {
        // For more information on bundling, visit http://go.microsoft.com/fwlink/?LinkId=301862
        public static void RegisterBundles(BundleCollection bundles)
        {
            bundles.Add(new ScriptBundle("~/bundles/jquery").Include(
                        "~/Scripts/jquery-{version}.js"));

            bundles.Add(new ScriptBundle("~/bundles/jqueryui").Include(
                           "~/Scripts/jquery-ui-{version}.js"));

            bundles.Add(new ScriptBundle("~/bundles/jqueryval").Include(
                        "~/Scripts/jquery.validate*"));

            // Use the development version of Modernizr to develop with and learn from. Then, when you're
            // ready for production, use the build tool at http://modernizr.com to pick only the tests you need.
            bundles.Add(new ScriptBundle("~/bundles/modernizr").Include(
                        "~/Scripts/modernizr-*"));

            bundles.Add(new ScriptBundle("~/bundles/bootstrap").Include(
                      "~/Scripts/bootstrap.js",
                      "~/Scripts/respond.js"));

            bundles.Add(new StyleBundle("~/Content/css").Include(
                      "~/Content/bootstrap.css",
                      "~/Content/site.css"));
        }
    }