Playback - On Error: Stop and Rerun Current Items Not Working.

Hello, can someone help me why Stop and Rerun Current Items on Errors is not working as before. When an error occurs, it is now continuing to run the whole test and then rerunning it, instead of stopping and then rerunning it. This is causing the execution to run very long and its very inconvenient. 

I have checked that my execution plan is using "Use project's On Error property" and that my project setting is set to "Stop and Rerun Current Items" when an error occurs. 

I have reinstalled test complete and it's still the same, how can I fix this?