Hassbian 1.31 Bluetooth tracker issues [SOLVED!]

Hi All,

I have upgraded my hassbian to version 1.31 and now i am experiencing issues with bluetooth tracker
I have a raspberry pi 2 with a usb bluetotth dongle which worked fine with the previous hassbian

2017-10-29 19:19:15 ERROR (Thread-15) [homeassistant.components.device_tracker.bluetooth_tracker] Error looking up Bluetooth device
Traceback (most recent call last):
  File "/srv/homeassistant/lib/python3.5/site-packages/bluetooth/bluez.py", line 289, in _gethcisock
    sock = _bt.hci_open_dev (device_id)
_bluetooth.error: no available bluetoot devices

During handling of the above exception, another exception occurred:

Traceback (most recent call last):
  File "/srv/homeassistant/lib/python3.5/site-packages/homeassistant/components/device_tracker/bluetooth_tracker.py", line 82, in update_bluetooth
    result = bluetooth.lookup_name(mac, timeout=5)
  File "/srv/homeassistant/lib/python3.5/site-packages/bluetooth/bluez.py", line 61, in lookup_name
    sock = _gethcisock ()
  File "/srv/homeassistant/lib/python3.5/site-packages/bluetooth/bluez.py", line 291, in _gethcisock
    raise BluetoothError ("error accessing bluetooth device")
bluetooth.btcommon.BluetoothError: error accessing bluetooth device
2017-10-29 19:19:19 WARNING (MainThread) [homeassistant.components.remote] Setup of platform harmony is taking over 10 seconds.
2017-10-29 19:19:19 WARNING (MainThread) [homeassistant.components.remote] Setup of platform harmony is taking over 10 seconds.
2017-10-29 19:19:21 WARNING (MainThread) [homeassistant.components.remote] Setup of platform harmony is taking over 10 seconds.
2017-10-29 19:19:21 WARNING (MainThread) [homeassistant.components.remote] Setup of platform harmony is taking over 10 seconds.
2017-10-29 19:19:25 ERROR (Thread-17) [homeassistant.components.device_tracker.bluetooth_tracker] Error looking up Bluetooth device
Traceback (most recent call last):
  File "/srv/homeassistant/lib/python3.5/site-packages/bluetooth/bluez.py", line 289, in _gethcisock
    sock = _bt.hci_open_dev (device_id)
_bluetooth.error: no available bluetoot devices

During handling of the above exception, another exception occurred:

Traceback (most recent call last):
  File "/srv/homeassistant/lib/python3.5/site-packages/homeassistant/components/device_tracker/bluetooth_tracker.py", line 82, in update_bluetooth
    result = bluetooth.lookup_name(mac, timeout=5)
  File "/srv/homeassistant/lib/python3.5/site-packages/bluetooth/bluez.py", line 61, in lookup_name
    sock = _gethcisock ()
  File "/srv/homeassistant/lib/python3.5/site-packages/bluetooth/bluez.py", line 291, in _gethcisock
    raise BluetoothError ("error accessing bluetooth device")
bluetooth.btcommon.BluetoothError: error accessing bluetooth device

I used the following instructions to add the user pi and the user homeassistant to the bluetooth group