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When selecting "offline allowed" fot web start, "<offline-allowed/>" is not being added to the genereated JNLP file. Only "update check" changes from "always" to background. Thus, offline mode is no longer supported without makin manual changes to the jnlp template file. This bug seems to have entered the platform after NetBeans 6.8.
Thanks for report. Fixed jet-main e4f1397f0880 You will need to regenerate the jnlp template in your project (master-application.jnlp). You can do it by disabling Java Web Start in your project, deleting the template and reenabling the JWS.