Found that manually editing the Server.XML allows the localhost to work too. I can figure a reason for this though since it was set to 127.0.0.1 beforehand. Now is set to 192.168.*.* though .. works fine for everything on the internet network.
Wowza Streaming Engine Manager (WSEM) operates in parallel with Wowza Streaming Engine (WSE). It looks like WSE is starting without the WSEM. Try a specific startup sequence to see if that helps the situation. Please refer to these instructions for specifics on how to (1) start Wowza Streaming Engine and then (2) Wowza Streaming Engine Manager.