OK I have created 2 screen movies of the problem.
You will see the first movie shows the UI Framework defaults to App Framework 7. The second movie then shows me creating a second project and again no option is shown for the UI Framework, but it this time defaults to App Framework (No number 7 shown).
Occasionally restarting XDK and starting a new project will allow me to select an App Framework, but it fails more often than not.
I have zipped 2 MOV files attached.
The subsequent creation of projects i.e the second video and more since are being created with the default of App Framework 3, XDK does not show the number 3 on the IDE but it shows under the project settings. The IDE does not have enough space to show App Framework 3, but shows Framework 7 because the text is shorter.
That's very strange. I cannot reproduce that with 3088. Whenever I make a new project (using the same blank template you did) when the html file is first opened in App Designer I am always shown a dialog asking me to select a framework.
If I make project, select a framework, and then delete that project and go back and make it again with the exact same name and location, it will not ask, because it has stored my previous choice. But this is a contrived case.
This is a bug that has been reported to engineering. If you already had a project named 'UI-Test' and if you delete that and create another project with the same name, this happens. The global-settings.xdk file assigns a framework name (i.e. Framework 7 if you chose it the first time) to the project 'UI-Test'. The framework is not removed from global-settings.xdk when you delete that project and so when you create one with the same name it preserves your previous framework selection and assigns it to the new project with the same name.
Here's a temporary workaround: