Avid Pro Audio Community - Bug? No session conversion unless logged in

A few weeks ago the Avid servers were down and I was unable to login within Windows PT HD 12.6 or the Application manager. I only work with local sessions, no online projects. I decided to open an old session I had from 6.4 LE As expected, PT offered to convert the session so I can use it in my HD. I've done this many times without problems. This time though, when I went to open the old PT 6 file, the HD system said I had exhausted my project limit and that I should delete some online projects to make room. I was not using the project, I was using local session. I ended up not able to work on the old session for over 12 hours until the servers came back online. Once I logged in, PT converted my local session and I saved it on my hard drive with none of the warnings/blocking displaying anymore.

Is this a bug? Why should I have to login online to open an old PT 6 session song and convert it to the new 12.6 format? This means if my internet is ever down, I am unable to convert old local sessions to new the version. Is this the expected logic in PT HD for this type of processing or is this a bug?

Tx