The issue I'm looking into as a result of this thread can be summarized briefly as:
When in design mode, expanding the Properties window for a control that can be extended by an extender already present on the page but is not already being extended (see sample page below: the relevant control is TB2, a TextBox on a page with a TextBoxWatermark) shows an extender entry in the Properties with a '+' to expand. However, expanding that entry does NOT display the relevant extender properties like it does for a control that is already being extended (TB1 in the sample below), but rather does nothing and removes the '+' graphic.
Very preliminary investigation on my part suggests that the problem is not due to the new data binding support in the 60731 release as one might guess, but rather was introduced with the switch from the April CTP of Atlas to the June CTP. (Recall that the previous release of the Toolkit (60626) shipped with the April CTP and therefore worked correctly.) I have not yet narrowed the issue down further, but will do so with Shawn on Monday as he's more familiar with the relevant code.
As outlined above, the best known workaround is to switch to source mode, add a simple extender properties entry for the relevant control manually, then switch back to design mode where the '+' will expand properly.
Thanks for everyone's help in identifying this issue and their patience as we figure out how best to fix it.