The Connected Services component Office 365 APIs failed: (HRESULT 0x80004003)

I've installed VS 2015 with Update 1 enterprise - twice now and getting the following error when I try and add an Office 365 connected service to my project.

The Connected Services component Office 365 APIs failed: (HRESULT 0x80004003). Object reference not set to an instance of an object.

Just before the error the following message appears in the output window: Successfully authenticated against mydevtenant.onmicrosoft.com as mydevaccount@mydevtenant.onmicrosoft.com.

Have other people being able to get this to work with VS 2015 Update 1? Any idea on how to debug the problem?

Thanks

Donal