query_posts not working after wordpress 3.7 update

Get rid of query_posts() in your template file. Instead, you need to filter the main query object, via pre_get_posts.

The following function will exclude the specified category and change posts per page for the main blog posts index:

function wpse102566_pre_get_posts( $query ) {
    if ( is_home() && $query->is_main_query() ) {
        $query->set( 'category__not_in', array( '103' ) );
        $query->set( 'posts_per_page', 1 );
    }
}
add_action( 'pre_get_posts', 'wpse102566_pre_get_posts' );