Which challenge you are trying to complete? For the one mentioned in this thread, it only requires answering to the questions and does not require to do any excercise on the developer org. Although, even if you are doing any other challenge which requires playing with the developer org platform, you should try login to the developer account from the link/option given to connect under the challenge section.
Is there a setting I am supposed to do to fix this isuse? Please advise.
Hope this helps.