I am facing the below issue with the Product.
We were able to isolate the issue and it is reproduce able on Bing.com.
Basically, the “ Run to Here “ or “Test as a Step” functionality , they both pretty much do the same job.
Taking you to the previously recorded steps to continue with further recording.
Steps to Reproduce-----
Go to Bing. Com and record few tests and close the browser.
Now, Right Click on the last recorded step and Select Run -To Here.
At this point, try to record and capture the Elements.
When you use either of the above mentioned functionality, the Recording and Elements capturing would stop working.
We were able to reproduce this from mine and one of my co-worker's laptop.
This is the same issue what I am facing with our Application (few weeks back Test studio has a release, could be related to build as it was working when i downloaded the tool initially)
Please let me know if you need any additional details from me.