angular-cli: Browser is not kicked off, changes are not detected

Bug Report or Feature Request (mark with an x)

- [x] bug report
- [ ] feature request

Versions.

Windows

10

Angular CLI

@angular/cli: 1.0.0                      
node: 6.10.1                             
os: win32 x64                            
@angular/common: 4.0.1                   
@angular/compiler: 4.0.1                 
@angular/core: 4.0.1                     
@angular/forms: 4.0.1                    
@angular/http: 4.0.1                     
@angular/platform-browser: 4.0.1         
@angular/platform-browser-dynamic: 4.0.1 
@angular/router: 4.0.1                   
@angular/cli: 1.0.0                      
@angular/compiler-cli: 4.0.1             

Node.js

v6.10.1

NPM

3.10.10

Repro steps.

ng new TestApp
cd TestApp
ng serve

The log given by the failure.

** NG Live Development Server is running on http://localhost:4200 **
Hash: 0e6d5fe3776172acc1f2
Time: 9378ms
chunk    {0} polyfills.bundle.js, polyfills.bundle.js.map (polyfills) 158 kB {4} [initial] [rendered]
chunk    {1} main.bundle.js, main.bundle.js.map (main) 3.69 kB {3} [initial] [rendered]
chunk    {2} styles.bundle.js, styles.bundle.js.map (styles) 9.77 kB {4} [initial] [rendered]
chunk    {3} vendor.bundle.js, vendor.bundle.js.map (vendor) 2.37 MB [initial] [rendered]
chunk    {4} inline.bundle.js, inline.bundle.js.map (inline) 0 bytes [entry] [rendered]
webpack: Compiled successfully.

Desired functionality.

1/ Web browser is not kicked off by default. Instead I need to use:

ng serve -open

2/ Changes are not detected at all. 3/ Project is not beeing recompiled. 4/ Browser is not refreshed when changes are applied.

Mention any other details that might be useful.