Unable to associate declarative workflow with list

Hi,

I have a simple workflow with no arguments and no list association. After successful deployment when I openAdd new workflow window I can see my workflow under available workflow definitions. Here is where the fun part begins. When I fill up the form and hit OK I'm redirected to the same form that now list declarative workflows only and couple of settings missing. And there is no way to continue since the only available actions are Back/Previous and Cancel. After checking the ULS logs I found this entry:

System.ArgumentNullException: Value cannot be null.  Parameter name: definitionId    
 at Microsoft.SharePoint.WorkflowServices.StoreWorkflowDeploymentProvider.GetDefinition(Guid workflowDefinitionId)    
 at Microsoft.SharePoint.WorkflowServices.WorkflowDeploymentServiceServerStub.GetDefinition_MethodProxy(WorkflowDeploymentService target, XmlNodeList xmlargs, ProxyContext proxyContext)    
 at Microsoft.SharePoint.WorkflowServices.WorkflowDeploymentServiceServerStub.InvokeMethod(Object target, String methodName, XmlNodeList xmlargs, ProxyContext proxyContext, Boolean& isVoid)    
 at Microsoft.SharePoint.Client.ServerStub.InvokeMethodWithMonitoredScope(Object target, String methodName, XmlNodeList args, ProxyContext proxyContext, Boolean& isVoid)    
 at Microsoft.SharePoint.Client.ClientMethodsProcessor.InvokeMethod(Object obj, String methodName, XmlNodeList xmlargs, Boolean& isVoid)    
 at Microsoft.SharePoint.Client.ClientMethodsProcessor.GetObjectFromObjectPath(XmlElement xe)    
 at Microsoft.SharePoint.Client.ClientMethodsProcessor.GetObjectFromObjectPathId(String objectPathId)    
 at Microsoft.SharePoint.Client.ClientMethodsProcessor.ProcessInstantiateObjectPath(XmlElement xe)    
 at Microsoft.SharePoint.Client.ClientMethodsProcessor.ProcessOne(XmlElement xe)    
 at Microsoft.SharePoint.Client.ClientMethodsProcessor.ProcessStatements(XmlNode xe)    
 at Microsoft.SharePoint.Client.ClientMethodsProcessor.Process()

However the workflow instance is created if I specify the association in Visual Studio. My guess is that there is something messed up with Workflow Manager but I can't figure it out. Any help would be appreciated.