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What method are you using to update the service reference? Try right clicking on your service reference and selecting 'Configure Service Reference' then double check the service address is correct. Once that is done, click ok, then right click the service reference again and select 'update service reference'.
have you changed the service reference in app.config?, you need to add those changes in app.config also. if possible can you share code .
Check this for Configuring Services
<service name="MyNamespace.myServiceType"> <endpoint address="myAddress" binding="yourPreferedBinding" bindingConfiguration="myBindingConfiguration1" contract="MyContract" /> </service>
I got it works.
This is what I did, I restarted Visual Studio and removed the service reference from proxy and then added it back.