When network connection failed to establish a list of recent links becomes disabled
From Trac https://trac.videolan.org/vlc/ticket/19238
On Network tab if I try to play localhost URL but VLC cannot establish connection then a list of recent URLs becomes disabled. And there is no way to enable it again but only close VLC and launch it again.
In order to test this enable loopback excempt for VLC using Fiddler
and play local stream. For example from ACE Stream or SopCast