I have not had any issues with that work flow in 2012. not sure what is going on.
but you can also try a slightly different workflow.
1. open old drawing.
2. right click drawing view and open model.
3. save as the model to the new name.
4. switch to drawing and save as it to the new name.
Thank you Jeremy for the alternative workflow option. It didn't work in this case however it appears to be efficient method for creating similar parts/dwgs. It appears that my issue may be related to this part (and drawing file) originally coming from a different company's PDM vault and some reference 'ghosts' there.
Welcome to the forum. I can't explain why your method isn't working, but I would like to offer an alternative workflow to the one suggested by Jeremy. You can do a pack and go of the drawing, giving new names to the drawing and model as part of the process.
This is something about the High/Draft Quality in drawing views. When your drawing view is in draft quality setting, the drawing view still hold the residual image of "old reference". So please change the view setting from draft to high quality, the residual old drawing image will disappear and the updated view with new reference will show up.
This is a link to Solidworks Help on Quality in Drawings:
Hope it helps!