Finally Resolved the problem!!!
The Problem is LC Server fails to log an exception from LC ES2 WB even though getting a failure after logon to the LC Server.
The failure to display the LC Process designer Screen for either creating a Process or editing a process was occuring because of the Port conflict that comes up when the LCDS 3.1 and the LC WB Communication is running on the same server using the same port.
Just resolved the problem:
Edited the Services Config file with the RTMP tag and changed the port from 2038 to 2058. Redeployed the LCDS 3.1. LC ES2 WB Works fine now...