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Just spoke to support - they are awesome btw! The easiest support I have ever been to - fantastic people! The operator who takes the call sounds so professional - I thought she was robo voice again.

Solution:
All I had to do was click Nothing in the sync tab under "preferences" and then click bonjour again and then set a password and boom all seems fine :)

Alternatively, I could also have gone to File menu and "Replace server database" to solve the problem.