I deleted all empty lines in the comment section at the beginning. This fixed the problem. As I mentioned below, 4.19 simulator worked correctly with the same file (I copied the .asm file to both versions of AS.
AS6.1 sp2 simulator didn't complain, but was off by one line.
I have been simulating the mega328p and mega2560. This time I was simulating the tiny1634.
This program worked correctly in the simulator in AS4.19
See attached screen print
1st. picture ep1, Disassembly view, pointer at the correct position.
2nd. picture ep2, from the source assembly view shows the pointer in the empty line before RESET
3rd. picture ep3, the nest step, from the source assembly view, shows the pointer at the nop but the register view shows that r16 has been loaded.