The reason behind this is probably the default 192.168.16.1 is the access to your router/ modem (the address you use to get to your router port forwardinmg and such).
By setting it to 192.168.16.1 it is trying to access your router settings.
Now if it was like the old school set up, you would use 192.168.16.45 (if thats the IP of your pc that is hosting the sever).
I have seen a post or two about dropping the last digit. I guess thats what the new system requires.
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