Getting user account integration working

I am very new to Membership Pro but well familiar with Joomla.  I have Joomla 5 and the latest Membership Pro (MP).  I have just been working on the Paypal integration and it works most of the way but not all.  I am not sure if I have missed something in Membershp Pro or perhaps in my Joomla User set up.  My test (tester5) completed Paypal successfully, the systsem logged the user in and MP user profile shows all is good.  I received the account activation email and clicked the activation link.  It took me to home page and I can also see the user in my user file - but it is not enabled or activated yet.  As tester5 I signed out and tried to sign back in with the ps provided. It didn't work.  As Admin I enabled and activated the account but the tester5 signin still did not work.  I tried the 'forgot password' and got the opportunity to reset the password but it still didn't work.  I then reset the password as admin from the backend and the signin worked.  As user I tried again to change the ps but user cannot now get in.
As I said, I must have missed something - from either Joomla or from Membership Pro but I don't know what. 
I think I see 2 problems there - 1) automatic activation from the link failed and
                                                  2) user cannot reset password
Attached is the  Global Config for User on my site.  Can you help please.  I can send login credentials if you would need to see the backend of the site.