Correct tags in PUBXML not recognized by intellisense

Question

I've noticed that in my PUBXML file, the first element is underlined by a blue wave. When I removed it and tried to enter it, I noticed that intellisense didn't recognize it. I've checked with MSDN about PUBXML files and it seems to be correct.

I also noticed that when I removed the first tag in the <PropertyGroup>, the second (now becoming the topmost) immediately got underlined by the same blue wave. So my conclusion is that it's not the inner, underlined tags that's something is wrong with.

What could be the error? How to trouble-shoot it?

Below are the contents of the the file. Please note that it's the untampetered with version provided automatically by MS/VS and Azure publishing file download.

<?xml version="1.0" encoding="utf-8"?>
<!-- This file is used by the publish/package process of your Web project. 
  You can customize the behavior of this process by editing this MSBuild 
  file. In order to learn more about this please visit 
  http://go.microsoft.com/fwlink/?LinkID=208121. -->
<Project 
  ToolsVersion="4.0" 
  xmlns="http://schemas.microsoft.com/developer/msbuild/2003">
  <PropertyGroup>
    <WebPublishMethod>MSDeploy</WebPublishMethod>
    <LastUsedBuildConfiguration>Release</LastUsedBuildConfiguration>
    <LastUsedPlatform>Any CPU</LastUsedPlatform>
    <SiteUrlToLaunchAfterPublish>...</SiteUrlToLaunchAfterPublish>
    <LaunchSiteAfterPublish>False</LaunchSiteAfterPublish>
    <ExcludeApp_Data>False</ExcludeApp_Data>
    <MSDeployServiceURL>...</MSDeployServiceURL>
    <DeployIisAppPath>VisitMore</DeployIisAppPath>
    <RemoteSitePhysicalPath />
    <SkipExtraFilesOnServer>False</SkipExtraFilesOnServer>
    <MSDeployPublishMethod>WMSVC</MSDeployPublishMethod>
    <EnableMSDeployBackup>True</EnableMSDeployBackup>
    <UserName>Chamster</UserName>
    <_SavePWD>True</_SavePWD>
    <PrecompileBeforePublish>True</PrecompileBeforePublish>
    <EnableUpdateable>False</EnableUpdateable>
    <DebugSymbols>False</DebugSymbols>
    <WDPMergeOption>DonotMerge</WDPMergeOption>
  </PropertyGroup>
</Project>

Answer 1

The XML editor will put a blue squiggle under anything not defined in the xmlns you've specified. However, this happens all the time - the MSBuild schema that VS ships with has relatively few properties considering that MSBuild lets you define arbitrary property names. In fact, you'll find these squiggles even if you open a project file in most cases.

Just ignore the blue squiggles.