Reference Paths do not update Reference Hintpath

Bug found in WIX Version 3.0.5120.0.

Using the 'Reference Paths' section in the wix project properties to point to a new path does not update the Hintpath of WixLibrarys or WixExtensions. When you open the Visual Studio WIX project properties and click on Paths tab you can change the Reference Paths here. This functionality performs in an identical manner as the other .net VS projects, it just looks a little different and is in a different place. Adding a folder to the reference path adds it to the list below where a new file is created <projectname>.wixproj.user with the following lines.

<Project xmlns="http://schemas.microsoft.com/developer/msbuild/2003">
<PropertyGroup>
<ReferencePaths>D:\Folder1\Debug\;D:\Folder2\Debug</ReferencePaths>
</PropertyGroup>
</Project>

Where the two folders D:\Folder1\Debug\ and D:\Folder2\Debug in that order are checked for the references. What happens on other .net projects is for any references if they are found in those folder they have their hint paths updated so that these new references are used. The tags which are not being updated are
<ItemGroup>
<WixExtension Include="WixUIExtension">
<HintPath>..\OldPathTest\bin\Debug\WixUIExtension.dll</HintPath>
</WixExtension>
</ItemGroup>
<ItemGroup>
<WixLibrary Include="PathTest">
<HintPath>..\OldPathTest\bin\Debug\PathTest.wixlib</HintPath>
</WixLibrary>
</ItemGroup>

But if I were to update the folder to use D:\ReferenceTest\OldPathTest\bin\Debug\ which contains a different PathTest.wixlib file, this one won't be used as the hint path, when it should be.

Example:
You can test this by creating two WIX libraries with just contain a feature of the same component with different description.

Wix Library's Contents:
<?xml version="1.0" encoding="UTF-8"?>
<Wix xmlns="http://schemas.microsoft.com/wix/2006/wi">
<Fragment>
<Feature Id="ProductFeature" Title="ReferenceTest" Description="&lt;UPDATE THIS&gt;" Level="1" &gt;<br=""> <ComponentRef Id="test"/>
</Feature>
</Fragment>
</Wix>

Where you can update the <UPDATE THIS=""> section with something like 'Using new path' and 'Using old path'.

Then you can create a product wix project which references the 'old' path (Using a browse to select the .wixlib, not using the project reference in the same solution).

Product Contents:
<?xml version="1.0" encoding="UTF-8"?>
<Wix xmlns="http://schemas.microsoft.com/wix/2006/wi">
<Product Id="00541297-eb9c-4696-8c0b-7e9565bd4e36" Name="ReferenceTest" Language="1033" Version="1.0.0.0" Manufacturer="ReferenceTest" UpgradeCode="64cbac1a-878c-46f2-98e5-472cdad96370">
<Package InstallerVersion="200" Compressed="yes"/>
<Media Id="1" Cabinet="media1.cab" EmbedCab="yes"/>
<Directory Id="TARGETDIR" Name="SourceDir">
<Directory Id="ProgramFilesFolder">
<Directory Id="INSTALLLOCATION" Name="ReferenceTest">
<Component Id="test" Guid="C5C2004F-DB06-4C7B-BE61-B4F5C47406A4">
<File Source="Product.wxs"></File>
</Component>
</Directory>
</Directory>
</Directory>
<FeatureRef Id="ProductFeature"/>
<UIRef Id="WixUI_FeatureTree"/>
</Product>
</Wix>

This has a link to the feature so that if its pointing to the old path it will show in the UI the description 'Using old path' when compiled.

The concept is that if we now go to the product's project properties, click path and add in the directory of the output where the new path's PathTest.wixlib is located then THAT one will be used instead.

What i believe need to occur is that the inclusion of these .user files needs to be absorbed by the msbuild task if they are not already (they may be). It then should update the hint paths based on the ReferencePaths property. This may already be done for '<Reference>' itemgroup references but because wix uses '<WixExtension>' and '<WixLibrary>' references these may not be checked.

I am happy to give further examples of this problem if requested.

Cheers,
Murray