Cannot play local server, starts as injured/dead

Hi all,

Just installed the newest stand alone PR v. 1.3.1.0

I am trying to play a local server to practice flying.
It does not matter how I set it up...whether it is Cooperative or deployment or any map I am starting up...

Once the map starts and I choose a spawn location, I am not able to spawn.

The screen shows as if I have died from injuries and it says press give up/medic.....and I am not able to press this button or spawn at all.

I have tried every way to play local server (it was working 2 days ago) and it is not possible. I even tried logging and playing in offline mode....Nothing

I am not able to change factions/sides or even press the "mutiny" button.....Nothing

Can someone please tell me why I am not able to do anything when starting a local server???

Is it related tot the latest update of the stand alone version???