FCPX not allowing selection of favourites in Media Import

Been using FCPX fine for some time, not sure what happen that cause this issue.

When I click on Media Import, I have able to select desktop or movie under the favouries header. Now it just show this,

1) Tried deleting the perferences, reboot, empty trash, same result.

2) Tried reinstalling FCPX, same result

However I can import the media if I drag the media from finder onto the FCPX event window.

Any ideas? Been driving me crazy!