I think I solved this by turning on Airplane mode. I’ll update.
Update: even in airplane mode after a few passes with recorded track distortion shows back up.
Latest Update: Most of distortion was coming from full sounds in Micrologue. I put Cubasis in the input slot of Audiobus and all is well. I’m guessing its because I have Audiobus buffer set to 512. It makes a big difference. So if you experience distortion try Cubasis from output slot in AB. I did this without going into airplane mode. What is the default buffer size in Cubasis, anyone know?