Gazebo7 fails to start after new px4 firmware build

After building (Ubuntu Xenial) the upstream version from Master using: make px4_sitl_default gazebo from the Firmware folder. Gazebo7 is launched but starts looking for models in the user home folder:

[Err] [InsertModelWidget.cc:298] Missing model.config for model "/home/nvidia/.cache"
[Err] [InsertModelWidget.cc:298] Missing model.config for model "/home/nvidia/.compiz"
[Err] [InsertModelWidget.cc:298] Missing model.config for model "/home/nvidia/.config"
...

However GAZEBO_PATH_MODEL is correctly set to /home/nvidia/Firmware/Tools/sitl_gazebo/models

Launching Mavros and px4 from my catkin will give Core Dumped error when trying to load Gazebo. Am I missing something? Is Gazebo7 still supported? Thanks