Drupal For Firebug Breaks Ctools

When using panels, in the content screen when you can add content, when you click on add content, the window pops up, and then an alert is shown. Took me a while to narrow down which module was causing this, and it's either the drupalforfirebug or the drupalforfirebug_preprocess. Here is the error:

(The site is running local on server http://hmc )

An AJAX HTTP error occurred.
HTTP Result Code: 200
Debugging information follows.
Path: /panels/ajax/editor/select-content/panel_context%3Apage-tp%3Apage_tp_panel_context/left
StatusText: parsererror
ResponseText: [{"command":"settings","settings":{"basePath":"\/","ajaxPageState":{"theme":"seven","theme_token":"TDHzXmDMwm1Dvn3UoJHYINJpzfpN7ViGV9x47isoyG4","css":{"misc\/ui\/jquery.ui.core.css":1,"misc\/ui\/jquery.ui.theme.css":1,"modules\/overlay\/overlay-parent.css":1},"js":{"sites\/all\/modules\/jquery_update\/replace\/ui\/ui\/minified\/jquery.ui.core.min.js":1,"misc\/jquery.ba-bbq.js":1,"modules\/overlay\/overlay-parent.js":1}},"overlay":{"paths":{"admin":"node\/*\/edit\nnode\/*\/delete\nnode\/*\/revisions\nnode\/*\/revisions\/*\/revert\nnode\/*\/revisions\/*\/delete\nnode\/add\nnode\/add\/*\noverlay\/dismiss-message\nadmin\nadmin\/*\nbatch\ntaxonomy\/term\/*\/edit\nuser\/*\/cancel\nuser\/*\/edit\nuser\/*\/edit\/*\ndevel\/*\nnode\/*\/devel\nnode\/*\/devel\/*\ncomment\/*\/devel\ncomment\/*\/devel\/*\nuser\/*\/devel\nuser\/*\/devel\/*\ntaxonomy\/term\/*\/devel\ntaxonomy\/term\/*\/devel\/*","non_admin":"admin\/structure\/block\/demo\/*\nadmin\/reports\/status\/php"},"ajaxCallback":"overlay-ajax"},"admin_menu":{"destination":"destination=panels\/ajax\/editor\/select-content\/panel_context%3Apage-tp%3Apage_tp_panel_context\/left","hash":"553f2ccab8d60a833f96b8729ff250eb","basePath":"\/admin_menu","replacements":{".admin-menu-users a":"0 \/ 2"},"margin_top":1,"toolbar":[]}},"merge":true},{"command":"insert","method":"prepend","selector":"head","data":"\u003cstyle media=\"all\"\u003e@import url(\"http:\/\/hmc\/sites\/all\/modules\/jquery_update\/replace\/ui\/themes\/base\/minified\/jquery.ui.core.min.css?lk9ym2\");\n@import url(\"http:\/\/hmc\/themes\/seven\/jquery.ui.theme.css?lk9ym2\");\n@import url(\"http:\/\/hmc\/modules\/overlay\/overlay-parent.css?lk9ym2\");\u003c\/style\u003e\n","settings":null},{"command":"insert","method":"prepend","selector":"head","data":"\u003cscript src=\"http:\/\/hmc\/sites\/all\/modules\/jquery_update\/replace\/ui\/ui\/minified\/jquery.ui.core.min.js?v=1.8.11\"\u003e\u003c\/script\u003e\n\u003cscript src=\"http:\/\/hmc\/misc\/jquery.ba-bbq.js?v=1.2.1\"\u003e\u003c\/script\u003e\n\u003cscript src=\"http:\/\/hmc\/modules\/overlay\/overlay-parent.js?v=1.0\"\u003e\u003c\/script\u003e\n","settings":null},{"command":"modal_display","title":"Add content to Left side","output":"\u003cdiv class=\"panels-add-content-modal\"\u003e\u003cdiv class=\"panels-section-column panels-section-column-categories\"\u003e\u003cdiv class=\"inside\"\u003e\u003cdiv class=\"panels-categories-box\"\u003e\u003ca href=\"\/panels\/ajax\/editor\/select-content\/panel_context%3Apage-tp%3Apage_tp_panel_context\/left\/activity\" class=\"use-ajax panels-modal-add-category\" title=\"\"\u003eActivity\u003c\/a\u003e\u003ca href=\"\/panels\/ajax\/editor\/select-content\/panel_context%3Apage-tp%3Apage_tp_panel_context\/left\/menus\" class=\"use-ajax panels-modal-add-category\" title=\"\"\u003eMenus\u003c\/a\u003e\u003ca href=\"\/panels\/ajax\/editor\/select-content\/panel_context%3Apage-tp%3Apage_tp_panel_context\/left\/miscellaneous\" class=\"use-ajax panels-modal-add-category\" title=\"\"\u003eMiscellaneous\u003c\/a\u003e\u003ca href=\"\/panels\/ajax\/editor\/select-content\/panel_context%3Apage-tp%3Apage_tp_panel_context\/left\/page-elements\" class=\"use-ajax panels-modal-add-category\" title=\"\"\u003ePage elements\u003c\/a\u003e\u003ca href=\"\/panels\/ajax\/editor\/select-content\/panel_context%3Apage-tp%3Apage_tp_panel_context\/left\/views\" class=\"use-ajax panels-modal-add-category\" title=\"\"\u003eViews\u003c\/a\u003e\u003ca href=\"\/panels\/ajax\/editor\/select-content\/panel_context%3Apage-tp%3Apage_tp_panel_context\/left\/widgets\" class=\"use-ajax panels-modal-add-category\" title=\"\"\u003eWidgets\u003c\/a\u003e\u003c\/div\u003e\u003cdiv class=\"content-type-button clearfix\"\u003e\u003ca href=\"\/panels\/ajax\/editor\/add-pane\/panel_context%3Apage-tp%3Apage_tp_panel_context\/left\/node\/node\" class=\"use-ajax panels-modal-add-config\" title=\"Add a node from your site as content.\"\u003e\u003cimg typeof=\"foaf:Image\" src=\"http:\/\/hmc\/sites\/all\/modules\/ctools\/plugins\/content_types\/node\/icon_node.png\" alt=\"\" \/\u003e\u003c\/a\u003e\u003cdiv\u003e\u003ca href=\"\/panels\/ajax\/editor\/add-pane\/panel_context%3Apage-tp%3Apage_tp_panel_context\/left\/node\/node\" class=\"use-ajax panels-modal-add-config\" title=\"Add a node from your site as content.\"\u003eExisting node\u003c\/a\u003e\u003c\/div\u003e\u003c\/div\u003e\u003cdiv class=\"content-type-button clearfix\"\u003e\u003ca href=\"\/panels\/ajax\/editor\/add-pane\/panel_context%3Apage-tp%3Apage_tp_panel_context\/left\/custom\/custom\" class=\"use-ajax panels-modal-add-config\" title=\"Create a completely custom piece of HTML content.\"\u003e\u003cimg typeof=\"foaf:Image\" src=\"http:\/\/hmc\/sites\/all\/modules\/ctools\/images\/no-icon.png\" alt=\"\" \/\u003e\u003c\/a\u003e\u003cdiv\u003e\u003ca href=\"\/panels\/ajax\/editor\/add-pane\/panel_context%3Apage-tp%3Apage_tp_panel_context\/left\/custom\/custom\" class=\"use-ajax panels-modal-add-config\" title=\"Create a completely custom piece of HTML content.\"\u003eNew custom content\u003c\/a\u003e\u003c\/div\u003e\u003c\/div\u003e\u003c\/div\u003e\u003c\/div\u003e\u003cdiv class=\"panels-categories-description\"\u003eContent options are divided by category. Please select a category from the left to proceed.\u003c\/div\u003e\u003c\/div\u003e"}]Drupal for Firebug General MessagesThere were no messages sent to the general log. Please use "firep($item, $optional_title)" to output messages to this console.Query Logging is Not EnabledPlease enable "Display query info" in the Devel Module Settings (devel/settings) to use this feature.There was no form altering.There was no user processing.There was no node processing.There was no views processing.There was no page processing.Drupal for Firebug General MessagesThere were no messages sent to the general log. Please use "firep($item, $optional_title)" to output messages to this console.Query Logging is Not EnabledPlease enable "Display query info" in the Devel Module Settings (devel/settings) to use this feature.There was no form altering.There was no user processing.There was no node processing.There was no views processing.There was no page processing.