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In case when you reset (Administration -> Diagnostics -> Caches -> versionedSettings) or somehow currupt cache of versioned setting — teamcity can fail of applying new versions of settings from repository.

In this case login to TeamCity server host. Navigate to <teamcity_data_dir>\system\caches\versionedSettings\ dir. And find which subdirectry contains settings of you project. Copy files fom .teamcity\ folder of you project repository to this dir to fix the issue