Routing and filesystem URL in 1.2.0-rc.3 seems broken

[Jusas]

I just upgraded from 1.2.0-rc.2 to rc.3 and it seems to break the local filesystem routes.
Example: in rc.2

$routeProvider.when('/', { 
        templateUrl: 'dummy/placeholder.tpl.html',
        controller: 'AppCtrl'
    });

With the URL:
file:///C:/dev/Web/TestProject/build/index.html#/

...loads fine, and the route works correctly. There is no redirecting.

However, in rc.3, the route does not work; instead it redirects by default to
file:///C:/dev/Web/TestProject/build/index.html#/C:/

Same happens to every route:
file:///C:/dev/Web/TestProject/build/index.html#/foo/bar
...becomes...
file:///C:/dev/Web/TestProject/build/index.html#/C:/foo/bar

So there's something funky going on since the 'C:/' is always inserted for some reason.

[symblify]

Duplicate of #4680.

[pkozlowski-opensource]

Closing as duplicate of #4680