After opening the Find & Open Database window, I clicked on the Star in the upper left corner. It asked something about Update Favorites and I said Yes. Then an error dialog stating ‘Variable [favoriteDBList] does not exist’.
After that initial error, clicking on the star produced other error messages as Pano was no longer happy with the Favorites star.
I ended up in a situation where Quitting Pano X was no longer an option as the Quit was dimmed and all Windows were dimmed. Apparently there must be some dialog open that I could not get to. Force Quitting now. And I can recreate it by doing the same steps again. When it asked if I wanted to Update Favorites, there are no favorites in the box at that moment.