Upgraded 10.1 and all Notebooks computation goes to Alpha

Questions
1

Not sure what I did wrong, but after upgrading to 10.1, all Notebook computation gets routed to Wolfram Alpha.
Proved this by unplugging network and putting simple command in Notebook, e.e. Graphics3D[Ball[]] and I get as error about not being able to connect to Alpha.
What setting/configuration is wrong?

Help,
Neil

2

Just installed 10.1 myself on windows 8.1 - no problems so far. I uninstalled 10.02 first before installing 10.1 though.

3

If I turn off access to the Internet, via Preferences > Internet Connectivity and then perform a simple calculation, I get:

The Wolfram Language is currently configured not to use the Internet. To allow Internet use, check the “Allow the Wolfram Language to use the Internet” box in the Help [FilledRightTriangle] Internet Connectivity dialog.

and no result