newly created JSS app when started in disconnected mode as below, tries to consume layout service and fails to load the page

[![enter image description here][1]][1]



[![enter image description here][2]][2]


  [1]: https://i.sstatic.net/avnc2.png
  [2]: https://i.sstatic.net/vtAkI.png

what could be causing this. tried creating fresh app multiple times, but same issue occurs..