Sorry it was

[ifupdown]
managed=false

Changed to
[ifupdown]
managed=true

and restarted

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You received this bug notification because you are a member of Desktop
Packages, which is subscribed to network-manager in Ubuntu.
https://bugs.launchpad.net/bugs/1127151

Title:
  The system network services are not compatible with this version

Status in “network-manager” package in Ubuntu:
  Confirmed

Bug description:
  Network is not working after the upgrade of  Ubuntu 12.04  network manager 
and related packages.
  First time happened already on June 2012, seems the problem still exists.

  Error message in Network manager is "The system network services are
  not compatible with this version"

  I needed to downgrade packages, Working versions below, later versions give 
the error
  libnm-glib-vpn1_0.9.4.0-0ubuntu3_i386.deb
  libnm-glib4_0.9.4.0-0ubuntu3_i386.deb
  libnm-util2_0.9.4.0-0ubuntu3_i386.deb
  network-manager_0.9.4.0-0ubuntu3_i386.deb
  network-manager-dbg_0.9.4.0-0ubuntu3_i386.deb

  Related thread and answer:
  http://ubuntuforums.org/showthread.php?t=2001421
  https://answers.launchpad.net/ubuntu/+source/gnome-nettool/+question/199450

  System info:
  Description:  Ubuntu 12.04.2 LTS
  Release:      12.04
  Linux bogey 3.2.0-24-generic-pae #39-Ubuntu SMP Mon May 21 18:54:21 UTC 2012 
i686 i686 i386 GNU/Linux

  Motherboard is gigabyte GA-E7AUM-DS2H with Nvidia Geforce 9400 chipset with 
integrated network.
  According to gigabyte website, network device is Realtek 8211CL chip 
(10/100/1000 Mbit) 

  # lcpci -v
  00:0a.0 Ethernet controller: NVIDIA Corporation MCP79 Ethernet (rev b1)
        Subsystem: Giga-byte Technology Device e000
        Flags: bus master, 66MHz, fast devsel, latency 0, IRQ 41
        Memory at e4187000 (32-bit, non-prefetchable) [size=4K]
        I/O ports at c800 [size=8]
        Memory at e4188000 (32-bit, non-prefetchable) [size=256]
        Memory at e4189000 (32-bit, non-prefetchable) [size=16]
        Capabilities: <access denied>
        Kernel driver in use: forcedeth
        Kernel modules: forcedeth

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