Thx @slllobodan – this is a completely fresh install for the 2nd time – same issues.
Thx @petervandoorn – good to know about the FTP uploads not automatically being recognised by the media library. Permissions for the Uploads folder (and sub folders) is 755.
Don’t know if if this makes any difference, but when i installed WordPress the Uploads folder wasn’t there, i had to create it via ftp…..