I just checked your sample with Internet Explorer 9. IE9 uses PresentationHost.exe to display the content and my system (Windows 7 SP1 x64), and by researching which assemblies are really loaded, I confirmed that I am using the v3.0 frame, which is not supports XAML 2009.
The documentation describes that for XBAP it selects the version of the framework to download, and therefore it can explicitly use the v4.0 framework, which supports XAML 2009 for free XAML. However, the documentation, unfortunately, does not indicate which version of the frame it will choose for free XAML, unlike XBAP.
Empirically, at least with your sample, I can confirm that PresentationHost.exe chooses the v3.0 frame. I cannot find a way to override this choice, for example, annotating XAML.
Rick sladkey
source share