Update: I just tried the episode by itself (Game Select) and it worked. It looks like its a bug on Story Mode with the second episode and getting stuck under the bed with nothing happening.
I'm having the same problem on the latest version. I didn't want to just play from the menu though because I wanted to have the full story mode in my vids. Any advice for getting out from under the bed? I would feel like I was missing out if I skipped any of the story mode.