Multiplayer Problem - Connot join session. Lobby contains too many players.

So we have a dedicated server running and when the server is migrated to another player we get this message and nobody can bring the session forward or join into the quali. We are all stuck in the lobby?!

Is there something special with the server settings or is this a genereal ams2 problem?

Server is set to 32 People - but only 16 can race?