AME - dynamic link and 'proxies' feature not working in Premiere Pro - AME not installed, but it is installed and can work standalone

Hello,

Adobe AME is fully installed and I am able to use it successfully standalone, but the Dynamic Link is not working from Adobe Premiere Pro, nor am I able to use the 'Proxies' feature, which I want to use to edit some 4k video in a 720p proxy. What can be wrong with the installation? Thank you in advance for help to solve the dynamic link and the proxy issues.

I have a Windows 10 OS installation. AME is v.12.0 (build 202) and it is a CC 2018 installation. Premiere Pro is CC 2017.1.1 release 11.1.1 (15 build).