I had the same exact problem. I had some customization done to my index.php in 1.0.2 and simply copied it over. Apparently 1.2 doesn’t like the way the 1.0.2 index.php called the css file and never loaded the stylesheet.
I moved the upgrade index.php over and recreated my old one using the new file. This is rather a pain for those with many customizations. Could this be fixed somehow?