XCode4 is an extremely well designed development environment for iOS. But once in a while you hit upon a few quirks. If you’re developing an application and are experimenting with a Settings.bundle, then later decide to remove it, you may be pleasantly surprised to continue to find it in the iOS Simulator and on your development devices.
The trick in handling this is to do a “Clean” in your XCode project in addition to removing the application from your target device or simulator. Now when you deploy a new version of your application, you should correctly not have a Settings.bundle anymore.
The reason for this is because the Settings.bundle is actually deployed as a set of files on your device. If you notice when your application creates data on the device, that data remains when you deploy a new version of your application. Unfortunately, it treats the Settings.bundle the same way.
Note: An application deployed to the App store will probably work correctly. But for whatever reason, the Simulator and provisioned devices need this extra hand.