Melita,
Technically this is causing an issue.
Can ESRI confirm its only a name change that has happened between these releases or have parameters changed as well that cause the issue (again, i am limited as not readily having access to a 10.x environment (which i think is causing the issue when attempting to use with a 10.1 environment).
Silverlight client (API) i believe does a lexical comparision between the cached services, since they differ, its an issue. Its not only cached service that this causes issues for, it is also using dynamic when interacting with graphic operations.
If what you are saying is ESRI has introduced change, then i I consider this a bug that ESRI has introduced. I have an open support ticket with ESRI UK but appreciate if any work-arounds you guys may be aware of to overcome this issue.
Brad