Figured would share this if anyone has this problem and cloudguard stop/start or mgmt reboot does not work. TAC gave me below and I tried in 2 setups and worked like a charm. Needless to say, maybe do quick mgmt backup, or at least save content of the directory in question : - )
1. Change the name of the folder $MDS_FWDIR/conf/SMC_Files/uo to uo_original
2. Run cpstop && cpstart on the mgmt server
3. Re-open updatable object picker
4. Make sure the $FWDIR/conf/SMC_Files/uo was created again
I just want to clarify one thing though...I did not change the name of ou dir, all I did is below, which keeps original directory and then moves same content to a new one:
mv $MDS_FWDIR/conf/SMC_Files/uo $MDS_FWDIR/conf/SMC_Files/uo_original
Would love to hear a feedback if any of you are having this issue, because then I can let TAC know that more people tested it and seems to be working fine.