Native AD LDS principals - ldp.exe 3.0 can no longer do simple binds - this used to work

I created a stand alone LDS instance, created native AD LDS users and was able to authenticate using simple bind using LDP.exe 3.0.  Then I tried adding windows principals to the same LDS instance and was not able to bind these windows principals using simple bind or SASL with LDP.  But here is what I am concerned with.  I can no longer do a simple bind with the native AD LDS users that was working before.  I tried resetting passwords, but that did not help.  I have confirmed those users are enabled.

Here is the error:

Can a single AD LDS instance contain both AD LDS native users and windows principals and still be able to bind native AD LDS principals successfully using simple bind?

What did I do to break what was working before?

Thanks

leo