Unable to update widgets since upgrading to 4.1.1

I upgrade my wordpress installation from 4.0 to 4.1.1. And now when I update my widgets in the dashboard (add, move, delete) the changes do get saved but the changes do not reflect on the front-end. I have W3 Total Cache installed and I have only disabled Object caching and allowed it to cache for 3 minutes. I thought it was the max_input_vars limit in phpini but that is sitting at 5000 and I can add and delete menu items without a problem.

Also I have the exact copy of the site(with WordPress 4.1.1) running on my staging and i do not have the same issues with widgets.

Could it be server settings? W3 Total Cache? WordPress 4.1.1