As you can check in the attached screen capture, the update panels are functioning correctly with the Q2 2013 release in the sample page that Marin provided. Please examine it and let me know if I am missing something. Also, verify that you are reproducing the issue in the same setup, and if there are differences describe them so that I can inspect the exact scenario.
A more detailed information about the encountered problem will be useful for determining its cause, for example if there are any error messages or the update panels are not reloaded.
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