Unable to select and insert image to a node using media file selector

Sorry if this turns out to be a duplicate problem, but I can't find anything similar on the issue queue. That's odd as this is quite a big issue, unless I'm missing something or been searching with the wrong keywords?

My environment:

• Upgraded from 7.x-1.0-rc3 to 7.x-2.0-unstable3
• Downloaded file_entity
• Ran update.php
• Media, Media Field, and File Entity are enabled

How to repeat:

1. Edit a node (which has an image field using media file selector widget)
2. Click on 'select media' to add an image
3. On the modal that has popped up, click on the View Library tab
4. Click on an image
5. Click on submit
6. The modal window now loads the homepage of the site. Modal does not close itself. Image does not get added

The same problem also happens when adding an image using WYSIWYG, and when selecting from the 'Library' tab instead of the 'View Library' tab.

It worked when I was using version 7.x-1.0-rc3, and only broke in 2.x.

Thanks!