Overload resolution and virtual methods

The answer is in the C# specification section 7.3 and section 7.5.5.1

I broke down the steps used for choosing the method to invoke.

First, the set of all accessible members named N (N=Foo) declared in T (T=class D) and the base types of T (class C) is constructed. Declarations that include an override modifier are excluded from the set (D.Foo(B) is exclude)
```
S = { C.Foo(B) ; D.Foo(A) }
```
The set of candidate methods for the method invocation is constructed. Starting with the set of methods associated with M, which were found by the previous member lookup, the set is reduced to those methods that are applicable with respect to the argument list AL (AL=B). The set reduction consists of applying the following rules to each method T.N in the set, where T (T=class D) is the type in which the method N (N=Foo) is declared:
- If N is not applicable with respect to AL (Section 7.4.2.1), then N is removed from the set.
  - C.Foo(B) is applicable with respect to AL
  - D.Foo(A) is applicable with respect to AL
```
S = { C.Foo(B) ; D.Foo(A) }
```
- If N is applicable with respect to AL (Section 7.4.2.1), then all methods declared in a base type of T are removed from the set. C.Foo(B) is removed from the set
```
    S = { D.Foo(A) }
```

At the end the winner is D.Foo(A).

If the abstract method is removed from C, the initial set is S = { D.Foo(B) ; D.Foo(A) } and the overload resolution rule must be used to select the best function member in that set.

In this case the winner is D.Foo(B).