URL Behavior - Custom Web Service SharePoint

Question

I am working on a Visual WebPart, where I need to consume a Custom Web Service.

I have a added a WebReference to the service which seems to be working fine.

Issue here is that if I am changing URL Behavior of service reference to Dynamic, its not adding any configuration entries or updating Reference.cs to retrieve URL from configuration.

UPDATE: It is adding reference by default as "Dynamic" but taking a static URL.

I am getting URL Behavior correctly if I am adding reference to any other project, but a Visual Web Part. So problem is not with Service, but the project where I am adding the reference.

Any Ideas?