I have a clean install of the the generator on node v0.12.2. I ran the tests using gulp test:auto. I see the following on the karma page:

and from the debug console:

Maybe I'm wrong, but I expect if I change the test for the main controller like so:
expect(scope.awesomeThings.length < 5).toBeTruthy();
that it should fail. The build process runs in my console but none of the output in Karma changes in my browser. Even if I refresh.
If I restart gulp test:auto with the failing test the output in the debug console is correct:

The other main Karma screenshot is the same as the first (which also seems wrong).