I was instructed by Skype customer service to do following:
- Go to Options -> Privacy and set "Keep chat history for.." to Disable History, then sign out & sign in.
- Go to $HOME/.Skype/my_skype_name/ and delete only main.db. Sign out & Sign in.
It worked.
Not sure why this was not the accepted answer. Works perfectly without a windows VM. However, it is strange that Skype team did not attempt to fix this glitch yet.
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