rancher: swarm initialization stuck

I have tried to upgrade to rancer v1.2.0 and got stuck at attached screen shot

Am seeing this error exceptionBusy processing [SERVICE.67] will try later

seeing this error in the logs:

12/3/2016 11:22:31 AMPublic Swarm not supported. Please re-register this host by setting CATTLE_AGENT_IP to a private IP address. 12/3/2016 11:22:31 AMRetrying set host label swarm=public_unsupported 12/3/2016 11:22:32 AMRetrying set host label swarm=public_unsupported 12/3/2016 11:22:33 AMRetrying set host label swarm=public_unsupported 12/3/2016 11:22:34 AMRetrying set host label swarm=public_unsupported 12/3/2016 11:22:35 AMFailed to set host label swarm=public_unsupported (5 tries)

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Useful	Info
Versions	Rancher v1.2.0 Cattle: v0.174.3 UI: v1.2.34
Access	github admin
Orchestration	Swarm
Route	swarm-tab.console