Symptoms

I want to associate my workflow to a SharePoint list. My requirement is that the workflow should be started when a new item is added to the list.
I tried to add a "SharePoint workflow integration" control from the toolbox and associate it to my list. But it gives me an error in the connection settings.
I am not sure what is going wrong with this.
I have attached a document with steps for reproducing the error, it also has the screenshots attached.
 

Diagnoses

A master page could have been the reason why this is not working.
But also as Dino mentioned that it cold be what is happening in the back end when clicking on Browse.
 

Resolution

The reason for this issue was never discovered.
It has been resolved when the client upgraded to 4.6.9