I determined it was off by right clicking on the system tray icon and seeing that Web Protection was saying "Off". I then opened Malwarebytes, went to "Protection" panel, where it was saying Web protection Off. I then clicked on the icon to start Web protection and 10 minutes later it was still saying "Starting". I then shut down malwarebytes and restarted it. Web Protection was still Off but I was able to then restart it manually. This happens on both of my pcs that have 3.0.5 installed and also on my wife's laptop.
Prior to upgrading to 3.0.5, I was having the usual 'false' notifications that everyone else was having but Web protection was in fact on. Since upgrading to 3.0.5..... *shrug*