I just ran into this issue for the very first time in around 5 years after I had to reinstall Kontakt and reactivate all of my libraries.
Following problems occur:
My GUI looks very different now, I think a screenshot will describe this better than I can:
I tried completely removing Cubase with all of its content and reinstalling by using the regular 9GB Cubase 8 installer which would not change anything. After that I again removed my whole Kontakt installation which did not help either.
Neither did the 8.0.40 update.
I also crawled through the settings to maybe find some messed up Track-look option that somehow got glitched during the Kontakt reinstallation.
I run a Win10 System with an i7-2600K + 20Gb Ram.
Any help is very very welcome!
Thanks in advance.