Sorry for the triple post but Disabling solid on 'player' has fixed the issue. No idea why this would make a difference but there you go.
Honestly is very confusing on C2 they followed one system for years and on C3 they changed it so:
On C3 if you have solid on the object it will not trigger the LOS
On C2 however, if you have solid on the object it will trigger the LOS
Here is an example:
Using the last C2 Version
https://www.dropbox.com/s/bofqrbm7lc7kyfk/LOS.capx?dl=0
-If you open on C2 you will see that it triggers the LOS by setting the Opacity for the black sprite
-But if you open it on C3 it will not trigger, not sure why they don't follow one system
The same thing they did with the Load from As.JSON they changed how the system works and they broke all the projects that use C3 R288 and lower unnecessary making people wasting time hours of work redoing all the events, not sure why they keep doing this as it's not professional at all.
Here is the Link:
https://github.com/Scirra/Construct-3-bugs/issues/5964