It appears that API level 13 has ("silently" as far as I can tell) introduced a change to how android:configChanges attribute is handled.
In my particular case, when "targetSdkVersion" in the app manifest is set to "13" any activities that are configured to internally handle orientation changes (e.g. should not be restarted on screen rotation) are being always restarted regardless of the android:configChanges="orientation" attribute in their declarations.
A simple switch of the "targetSdkVersion" to "12" restores the expected behavior.
I searched the API 13 release notes and could not find any mention of such change. Does anyone know if API 13 (and possibly later APIs) will by design not support android:configChanges="orientation", or if there is another approach to achieve this.