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Sorry, no quotes are available for this order at this time

Sorry, no quotes are available for this order at this time

We are using the matrix shipping rates and have one product (subscriptions) that have been put in the category - FREE Shipping.
 
We made a cart rule that if one of the products (the subscriptions) in the category 'FREE shipping' is put in the cart there will be no charge for shipping....
 
This works well in combination with other products in the cart (the charged shipping rates are correct) BUT if we opt for just the subscription in the category and try to check out we will not come further than the Shipping Page which gives us the error "Sorry, no quotes are available for this order at this time."
 
Any suggestions how to resolve this issue?
 
And NO - changing the FREE shipping method in configuration to 'Yes' doesn't work as you will be given the option for free shipping or charged shipping.... Yes, I flushed the cache as well.