Thanks for your suggestion, but I wasn't exactly keen on playing around with profiles, so I kept digging around until I found the answer myself.
Here is the (surprisingly simple) solution:
To Clean Preferences: Follow the steps below on Mac
1. Close Captivate
2. Go to Applications/Captivate 6/utils
3. Run CleanPreferencesMac
4. Start Captivate
To Clean Preferences: Follow the steps below on PC Windows machine:
1. Close Captivate
2. Go to C:\Program Files\Adobe\Adobe Captivate 6 x64\utils
3. Run CleanPreferencesWin.bat
4. Start Captivate
So it was simply a matter of cleaning my preferences, and it worked like a charm in Captivate 8 as well.