Thanks for response Steve. No traffic shaping, running Squid and Light Squid only. It looks all the issues were Squid related. I found bunch of errors in log, where system was continuously trying to start squid service. I removed Squid which resolved all other issues I mentioned. The Packages are available now and GUI is responsive again.
I tried to reinstalling Squid packages multiple times but cannot get Squid service to start. I will do some research around Squid, now that I know what the main issue is.
Thanks again,
GBR