I have been accused of not letting go... I wish I didn't suffer from that affliction.
In short, I got it working, but that was 45' ago. I have no idea what will happen tomorrow morning. Moreover, I don't know what the problem/cure was.
Here's the sequence and a few comments. Maybe it will help someone:
1) Uninstalled MPLAB X2.35, including the 2.35 "related" folders
2) Downloaded and installed ver. 3.0.02 (beta) -- It is almost 8% bigger, but I don't think the new version made any difference. My processor was still misidentified.
3) Did the new project dialog again with same source file and added the necessary support files.
4) Took care of project properties: removed case sensitivity; added absolute build; tool set defined as mpasm (not sure that is necessary); left other things default -- So far, except for the version difference, this is the same as before.
5) Built the project. Then started adding watch registers. The SFR's went well. Surprisingly, it allowed me to add my variables as SFR, but that didn't last long. It erased them on the first compile. You do need to compile/build after adding watch registers, a difference from MPLab 8.xx, as I recall.
6) After building, right clicked on the registers I wanted, clicked on add new watch, and they appeared in the watch window.
7) Compiled again and they were still there! That is the biggest difference I noted in behavior to this point.
8) Then tried all sorts of things to simulate/debug. Nothing worked. Kept getting an error that I must choose a simulator in the properties dialog. I pounded that key into the desk, and it still didn't work.
9) Then I had a little epiphany. I installed PK3 as the simulator, knowing full well one was not attached, and I had no intention of programming a chip. That failed, of course. But then when I re-clicked on the intended simulator, it recognized it, and everything from then on seemed to work, including synchronous injection and so forth. Most gratify of all, my variable registers showed updates of the polled PIR1 flag and captured TMR1 values.
Seems to be one of many bugs. Maybe version MPLAB XL will work better.
John