Performance Center 12.01, not recognizing the Controller?

We recently upgraded to PC-1201. After creating the scanario whenever i kick off the run, I get the attached error. Has anyone see this error before and if yes, do u have a soluton for it?

 

By the way, the PC-Host is configured in Lab Management and is showing no errors. Once i run the schedual after failure, the PC-Host turns non-operational status in the Lab Management.