UPDATE -- process to replicate issue:
1) Create a website project at c:\\projects\\restart-demo
2) Add default web.config a
Enable ASP.NET Health Monitoring and look in the event log to see why the AppDomain restarted.
I bet this is because you've used a web site project, instead of a web application project. Try to reproduce this with a web application project.
Also, do you have any anti-virus or indexing software running? Such software notices when folders are created and/or modified.