Bentley Learn - Element not Valid for Tool Error

I am working through the Drainage Layout and Design course in the "09 - OpenRoads Designer - Drainage & Utilities - Fundamentals" module in the Learn Server. This is a PDF instruction course to walk through placing manholes, inlets, pipes, etc. All the files and references that I am using were downloaded directly from Bentley for use in this course.

I am receiving the "element not valid for tool error" when attempting to insert a node or generate a profile. 

First, I receive the error when attempting to place a manhole along an existing pipe. The instructions from the PDF are shown below (left) and the screenshot of the model (right) is when I attempt to do the same. You can see the difference in the pop-up diolog box that is generated between their screenshot and mine. I'm on step 7 in the instructions.

I skipped this and went on without placing the manhole but then I received the same error when attempting to create  a profile. When I attempt to click on the start node to generate the profile is doesn't seem to recognize the node. Step 6 in the PDF instructions below.

Any idea why this is happening and what I can do to fix it?

Thanks