Apple TV does not see iTunes Library as on

I have been using ATV for a few months now, I sync photos to ATV and stream music from my computer using iTunes. When I go to sources, I see my library in a greyed out letters and all attempts to connect tell me to turn on the computer and launch iTunes, all the above are on.
This is a new problem after update of software.

I've updated both iTunes and the ATV software. I can now do the uTube thing fine.
I want to sync photos and stream music from same computer. This worked until I did the above updates.
From the ATV, I see my computer to sync photos, but when I want to stream my music from the same computer, the library appears in ATV as a source but it is GREY, as if the computer is not on. The computer is on and running iTunes. When I change my library name in iTunes, the ATV shows the new name, but still greyed out. This is new behavior in the new software. I was able to both Sync photos and stream music from the same computer in the past. Now do I have to turn off sync to stream music from the same source?

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