Ohhhhh :(
See the differences:
<telerik:RadWatermarkTextBox
VerticalContentAlignment="Top"
HorizontalScrollBarVisibility="Auto"
VerticalScrollBarVisibility="Auto"
IsReadOnly="True"
Text="{Binding Text, Mode=OneWay}"/>
and
<TextBox
VerticalContentAlignment="Top"
HorizontalScrollBarVisibility="Auto"
VerticalScrollBarVisibility="Auto"
IsReadOnly="True"
Text="{Binding Text, Mode=OneWay}"/>