69 files in media. all of them very small
...it's not necessarily the size but the total number. 69 is possibly a new world record 
Are they all HTML files? Are they all truly necessary? I ask because if you are going to add more in the future, the problem could then materialise on the %code.appinventor.mit.edu Server.
LOL! a world record? My first app breaking the glass ceiling? haha
no ... some are .jpg but small such as images for buttons but yes necessary
perhaps I could eradicate the help files but they are only 6 1k html files
I think the Project could load on the %ai2.appinventor.mit.edu if the HTML files were not in Assets, just tipping the balance. Converting the jpgs to Webp should result in slightly smaller files but what could help most is ensuring the images are not compressed - because compressed images have to be uncompressed before they can be displayed and that takes time.....
The HTML files would not be eradicated but supplied separately to the APK. Alternatively the APK can be edited to replace tiny tiny Assets of identical names with the real-sized ones.
Have we ascertained that it is only this one project causing the problem? Do other projects with assets present the same error ?
If the former then I would lean towards what Dora said, and that the project is corrupt in some way (even it is does load on code server). If the latter possibly a problem with the offline version...
I just a minute ago tried ai2 ... just for grins and giggles 
I actually managed to get connected !!!! Not only did it connect to MIT but it loaded the aia, it launched and ran the companion without error and the app ran in the companion just fine !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Yes, this is known by Evan - in fact you can tell you are near the mark when App Inventor fails to load say 2 out 10 files dragged into the tray.
IT just ran fine a few minutes ago Tim!!! Yes I was having trouble with the companion running before on small tool projects also.
That might be a separate issue, unless you were close to your own world record in those Projects also...
no .. one of the others is only 1,050 kb and 6 jpg
It is most likely this is a combination of factors causing the problem at your end -
"something wrong with "things" at your end"
and it can take a few days of self configuration by various systems / caches / etc. to sort themselves out.
I have similarly suffered, something changes on the ai2 configuration, or breaks, I have a problem, no-one but me has the same issue, and eventually my system catches up and everything is OK again. Of course, I am special, and have a particular setup, my choice, my life, I have to live with it and work through it.
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really need to get OFFLINE to work 
File cant be corrupted if it will compile and run perfectly can it?
... the issue with the Companion would have been something different then.
I think we are seeing a hole in App Inventor because the recent introduction of images for List Views can only increase the total count in Assets.
They don't have to be in the assets....(pull down from online to ASD, or use urls)
my html? They are hand written and super simple as well as small
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It can be corrupted during the upload. Currently, AI2Offline (which is a 3rd Party program based on the Open Source, MIT does not oversee it) is proving reliable but there have been times in the past where none of the Offline efforts could be 100% trusted as they all had niggles from time to time and that included being unable to load the Project onto the MIT Server. Plus of course, as soon as a new App Inventor version is released, the 3rd Party programs are out of date.
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Lucky me? 