garageband 10 can not find audio files

I created a GB project recorded a song and saved it as song1.band. Then I deleted all the audio from the 8 tracks and started song 2 and saved it as song2.band. Should work, but now when I open GB the last project opens OK but when I go to a recent or existing GB file I get a list of all 8 tracks and an error message stating the audio files can not be found.

Per another post I checked in finder and right clicked to open the project file and in the Media/Audio Files I can see the files and they are not empty.

What an I doing wrong? Why can't the files be found?