C# – INotifyPropertyChanged – Event stays null

You set the DisplayMemberPath and the SelectedValuePath to "Name", so I assume that you have a class PhoneBookEntry with a public property Name.

Have you set the DataContext to your ConnectionViewModel object?

I copied you code and made some minor modifications, and it seems to work fine. I can set the viewmodels PhoneBookEnty property and the selected item in the combobox changes, and I can change the selected item in the combobox and the view models PhoneBookEntry property is set correctly.

Here is my XAML content:

<Window x:Class="WpfApplication6.Window1"
        xmlns="http://schemas.microsoft.com/winfx/2006/xaml/presentation"
        xmlns:x="http://schemas.microsoft.com/winfx/2006/xaml"
        Title="Window1" Height="300" Width="300">
<Grid>
    <StackPanel>
        <Button Click="Button_Click">asdf</Button>
        <ComboBox ItemsSource="{Binding Path=PhonebookEntries}"
                  DisplayMemberPath="Name"
                  SelectedValuePath="Name"
                  SelectedValue="{Binding Path=PhonebookEntry}" />
    </StackPanel>
</Grid>
</Window>

And here is my code-behind:

namespace WpfApplication6
{

    /// <summary>
    /// Interaction logic for Window1.xaml
    /// </summary>
    public partial class Window1 : Window
    {
        public Window1()
        {
            InitializeComponent();
            ConnectionViewModel vm = new ConnectionViewModel();
            DataContext = vm;
        }

        private void Button_Click(object sender, RoutedEventArgs e)
        {
            ((ConnectionViewModel)DataContext).PhonebookEntry = "test";
        }
    }

    public class PhoneBookEntry
    {
        public string Name { get; set; }

        public PhoneBookEntry(string name)
        {
            Name = name;
        }

        public override string ToString()
        {
            return Name;
        }
    }

    public class ConnectionViewModel : INotifyPropertyChanged
    {
        public ConnectionViewModel()
        {
            IList<PhoneBookEntry> list = new List<PhoneBookEntry>();
            list.Add(new PhoneBookEntry("test"));
            list.Add(new PhoneBookEntry("test2"));
            _phonebookEntries = new CollectionView(list);
        }

        private readonly CollectionView _phonebookEntries;
        private string _phonebookEntry;

        public CollectionView PhonebookEntries
        {
            get { return _phonebookEntries; }
        }

        public string PhonebookEntry
        {
            get { return _phonebookEntry; }
            set
            {
                if (_phonebookEntry == value) return;
                _phonebookEntry = value;
                OnPropertyChanged("PhonebookEntry");
            }
        }

        private void OnPropertyChanged(string propertyName)
        {
            if (PropertyChanged != null)
                PropertyChanged(this, new PropertyChangedEventArgs(propertyName));
        }
        public event PropertyChangedEventHandler PropertyChanged;
    }
}

Edit: Geoffs second example does not seem to work, which seems a bit odd to me. If I change the PhonebookEntries property on the ConnectionViewModel to be of type ReadOnlyCollection, the TwoWay binding of the SelectedValue property on the combobox works fine.

Maybe there is an issue with the CollectionView? I noticed a warning in the output console:

System.Windows.Data Warning: 50 : Using CollectionView directly is not fully supported. The basic features work, although with some inefficiencies, but advanced features may encounter known bugs. Consider using a derived class to avoid these problems.

Edit2 (.NET 4.5): The content of the DropDownList can be based on ToString() and not of DisplayMemberPath, while DisplayMemberPath specifies the member for the selected and displayed item only.

Without using something like postsharp, the minimal version I use uses something like:

public class Data : INotifyPropertyChanged
{
    // boiler-plate
    public event PropertyChangedEventHandler PropertyChanged;
    protected virtual void OnPropertyChanged(string propertyName)
    {
        PropertyChangedEventHandler handler = PropertyChanged;
        if (handler != null) handler(this, new PropertyChangedEventArgs(propertyName));
    }
    protected bool SetField<T>(ref T field, T value, string propertyName)
    {
        if (EqualityComparer<T>.Default.Equals(field, value)) return false;
        field = value;
        OnPropertyChanged(propertyName);
        return true;
    }

    // props
    private string name;
    public string Name
    {
        get { return name; }
        set { SetField(ref name, value, "Name"); }
    }
}

Each property is then just something like:

private string name;
public string Name
{
    get { return name; }
    set { SetField(ref name, value, "Name"); }
}

which isn't huge; it can also be used as a base-class if you want. The bool return from SetField tells you if it was a no-op, in case you want to apply other logic.

or even easier with C# 5:

protected bool SetField<T>(ref T field, T value,
    [CallerMemberName] string propertyName = null)
{...}

which can be called like this:

set { SetField(ref name, value); }

with which the compiler will add the "Name" automatically.

C# 6.0 makes the implementation easier:

protected void OnPropertyChanged([CallerMemberName] string propertyName = null)
{
    PropertyChanged?.Invoke(this, new PropertyChangedEventArgs(propertyName));
}

...and now with C#7:

protected void OnPropertyChanged(string propertyName)
   => PropertyChanged?.Invoke(this, new PropertyChangedEventArgs(propertyName));

protected bool SetField<T>(ref T field, T value,[CallerMemberName] string propertyName =  null)
{
    if (EqualityComparer<T>.Default.Equals(field, value)) return false;
    field = value;
    OnPropertyChanged(propertyName);
    return true;
}

private string name;
public string Name
{
    get => name;
    set => SetField(ref name, value);
}

And, with C# 8 and Nullable reference types, it would look like this:

public event PropertyChangedEventHandler? PropertyChanged;

protected void OnPropertyChanged(string propertyName) => PropertyChanged?.Invoke(this, new PropertyChangedEventArgs(propertyName));

protected bool SetField<T>(ref T field, T value, [CallerMemberName] string propertyName = "")
{
    if (EqualityComparer<T>.Default.Equals(field, value)) return false;
    field = value;
    OnPropertyChanged(propertyName);
    return true;
}

private string name;
public string Name
{
    get => name;
    set => SetField(ref name, value);
}