Got it.  I had to say:

<% content_for :secondary_nav do %>
  <%= navigation [:crust_types, :toppings] %>
<% end %>
<%= render "layouts/application" %>

Note that I deleted the word "file" from the last statement which was:

<%= render file "layouts/application" %>

I have no idea why it works in the other application where I assemble 
layouts using dynamic headers and footers using the same technique which 
uses render file instead of just render statements.

Another of Rails "hidden" features I suppose?
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