Settings for Starter theme causes a "Error - configured incorrectly"

Installed by over-writing alpha version, then performed update.
On clicking Settings for the starter theme received error message - not correctly configured
If grid overlay is disabled everything works OK, except can not use responsive design.
I have tried all the normal things such as deleting the tables, putting them back in. De-installing and re-installing.
Is this a bug or a problem caused by me?