Stability of circulant graphs

The canonical double cover $\mathrm{D}(\Gamma)$ of a graph $\Gamma$ is the direct product of $\Gamma$ and $K_2$. If $\mathrm{Aut}(\mathrm{D}(\Gamma))=\mathrm{Aut}(\Gamma)\times\mathbb{Z}_2$ then $\Gamma$ is called stable; otherwise $\Gamma$ is called unstable. An unstable graph is nontrivially unstable if it is connected, non-bipartite and distinct vertices have different neighborhoods. In this paper we prove that every circulant graph of odd prime order is stable and there is no arc-transitive nontrivially unstable circulant graph. The latter answers a question of Wilson in 2008. We also give infinitely many counterexamples to a conjecture of Maru\v{s}i\v{c}, Scapellato and Zagaglia Salvi in 1989 by constructing a family of stable circulant graphs with compatible adjacency matrices.