Recommendation: Don´t use a character that involve any sort of projectile on mugen 1.1 unless is specified that it works in mugen 1.1 All characters that aren´t built for 1.1 have that problem.
Suggestion: Maybe he can give a look on Rare Akuma (POTS):
Wow, my wishes come true. The chars are Fine now. Thanks! But I noticed something wrong. The other chars A.I., even at level 1, easy escape the grapple normal from Alex and Ibuki. Some even disappear, as in the image below. And, thanks again for config.txt