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This may be an extremely asinine question, but which installation option did you select when installing UPK 11.1 on your laptop?
There are 4 options (applicable to developer other than Knowledge Center) and some people do confuse them sometimes:
1. Developer Client
3. Server and Client
4. Single User Install
You should be selecting option 4 - Single User Install. To me, it sounds like you installed the Developer Client (which is used in multi-user environments) to connect to a UPK server (where the library resides on the database).
When UPK asks you for the library location, does it gove you an example of the format it requires (i.e. https://server/virtual directory)? If this is the case, then you most certainly have the incorrect "developer" option installed. When creating a new profile in UPK, you are requested to define the library location (whether in a single or multi-user environment). For a single environment you can define any local folder, and for a multi-user install, you will define the virtual directory as defined in the server installation of UPK.
Try and re-install using the Single User Install option and see how it goes?
Hope you get sorted!