Actual Answer
This bug is in the market for a time now. I have seen similar issue on another forum too, where the user was facing the same issue and same thing he tried but all in vain.
I think you need to wait for the next Update for your System, or try removing each and every component that WebMatrix installed, that means all the .NET Frameworks (4th version), Sql Dependencies Sql Server Ce, and all other files that were shipped along with WebMatrix to your computer. Remove them, and start the installing process once again freshly.
If nothing does the job, please uninstall WebMatrix 3 and install WebMatrix 2: Click here for link. I know it is awkward to go back a version, but you'll have to. Secondly you can mention this bug on their support/suggestion page. They would fix it.
http://webmatrix.uservoice.com/
I hope that would help you. And you'd be back in developing the apps :-)
Just for information
Secondly, do you understand what is meant by debug? Debugging is a method or process to remove the bugs from a software or an application etc. When you chose Visual Studio, it provided you or not provided you with the WebMatrix source code, I am not sure I never tried it. And you tried out debugging it. The exception is gave you, was a message saying that the parameter you're passing onto the next stage is a null
. Which means it doesn't even exist and thus the value or the method cannot be executed and it breaks.