No. At some point in the past your identity was marked inactive. With 1.2+, the tunneler is now respecting the setting in the config file. It's unknown at this time how or when your identity would have been set to active=false but you shouldn't ever have this issue again unless you set it to false by running the same command again.
This warning relates to loading the config file as a file, as opposed to a string. At this time, this is entirely expected. First the c sdk tries to load the string as an identity, when that fails (this warning) the c sdk tries to load the identity as a file.