Setting up countries and zones do not seem to work ? v1.7.2

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Setting up countries and zones do not seem to work ?

 

I have set up a new zone. Also a new country within that zone. All are displayed as active.

 

However in viewing 'states' it only displays Italy, North America, Asia, Oceania and South America as 'zones'. And it only displays Argentina, Australia, Canada, Indonesia, Italy, Japan, Mexico, United States as 'countries'

 

In trying to create a new 'state', only those countries listed above are select-able, even thou my new zone is select-able.

 

Anybody else have the same problem, or is it a known bug, or is it me??