Strange, after giving up last night thinking of having to wipe and reinstall Kodi I restarted the machine today and a new error popped up "kodi unable to create application". Did a search and found a corrupt profile.xml can cause this error.
As I use 5 different Profiles to segregate my collection, I did as the forum post suggested and bingo Kodi loaded as well as played the video's.
Copy of the log
http://ix.io/Uoh after removing profile.xml.
This is not the first time a profile issues has caused me pain, i have missed 2 complete releases Jarvis and Krypton because profiles were broken, Isengard was the last time profiles worked seamlessly.
I hope this is not a pretext of future problems. Leia has been the a breath of fresh air after testing it on my backup HTPC it has ticked all the right boxes. I hope it keeps doing so in the future.
P.S The errors of the past seemed to be due to when switching profiles the profile would not save and release it self from the cache before loading the new profile thus overriding part of the new profile settings. No one seemed to be interested in investigating the issue in the past hope developers keep a eye open on this release.