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Setting PublishAot to true disables startup hooks (StartupHookSupport is set to false).
This in turn disables Hot Reload since Hot Reload needs startup hook to function.
The reason why StartupHookSupport is disabled even in Debug builds is that we don't want the behavior of the application to differ between Debug and Release build.
If a customer wants to use Hot Reload they can StartupHookSupport property in the project to true. This effectively defeats the purpose of the default value.
Proposal
Special case Hot Reload startup hook assembly (e.g. by name) and load it even when startup hooks are disabled.