Symptoms
The SharePoint Content database was moved from the Production environment across to the Development environment (which got overwritten).
Diagnoses
There are a bunch of errors logged in the K2 HostServer running in console mode on Dev because the hidden lists are still pointing to the Production SP environment.
Resolution
Re-run the K2 for SharePoint Setup Manager (from installation media) and do a repair on the SharePoint server.
This will repair all the K2 components on that environment, then later on one can re-deploy and re-activate all K2 components and features on the selected site collection, which should update the hidden lists and get it working again.