Same here, no sustain pedal at all.
It’s just that the notes have been unnaturally lengthened in the editor for some reason.
The weird thing is the actual piano display on the left actually shows the notes by lighting up - then they go off at the right place but the displayed notes in the editor continue on.
I’m really hoping for a fix on this one, it’s the last thing that’s preventing me from getting started on recording with Cubasis now that the editing has been improved.