Good news everyone! I have found the issue and fixed the problem. New system settings under Security & Privacy - need to unlock and then allow Skitch (and any other screen capture software) to record the contents of your screen. I even used Skitch to capture that to show you it worked!
Hi @dianeincanada I have the same problem currently - but I can't see where to change permissions. I can't find anything under System Preferences -> Extensions. Please let me know where you changed your permissions. Thank you.