I have a worker using WindowsAzure.Storage 5.0.0 at the moment, and it works fine when deploying locally. Upgrading WindowsAzure.Storage to the latest 5.0.2 causes the WebRole to go blue in the Compute Emulator UI with "Role state Aborted", and EventViewer's Application log has a tell-tell sign (IIS Express):

The worker process for application pool 'UUID' encountered an error 'Cannot read configuration file' trying to read global module configuration data from file '\\?\C:\Users\username\AppData\Local\dftmp\Resources\UUID\temp\temp\RoleTemp\applicationHost.config', line number '0'. Worker process startup aborted.

The folder mentioned doesn't have applicationHost.config file indeed, unlike other roles that don't use Storage - and any attempt to copy the file in there ends up with the file disappearing moments later.

I think the 5.0.2 update is bad and broken. Please help?