In case you haven't got the answer for it: I faced the similar issue yesterday when I try to configure props.conf in the local directory. I copied everything from props.conf.example ( http://docs.splunk.com/Documentation/Splunk/7.1.1/Admin/Propsconf ) and there we have :
# The following example shows how to configure lookup tables
[my_lookuptype]
LOOKUP-foo = mylookuptable userid AS myuserid OUTPUT username AS myusername
which was the root cause of this issue. I disabled it (put # in front of these lines) and restarted Splunk. Everything is working fine now. I am writing here to help someone who might face the same issue with Splunk 7x.
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