look its hard to follow your test. Yes its true. Cubase doesn’t correctly compensate the latency when you loop back record the live monitoring. Apperantly It only adjusts for the input latency in this case. But to be honest: This is a scenario that actually doesn’t really have any use does it? In my opinion its not intended to loop back record the monitoring signal. Thats why cubase doesn’t compensate. Loop back of allready recorded stuff works fine and also using outboard gear as external effects or instruments works without a problem here.
Also midi recordings that i do are right on spot.
Maybe you could expain what it is what you actually want to do with Cubase. Because i have the feeling you don’t use it like it is intended to?
Cubase doens’t allow to turn off latency correction for recordings alltogther. The “adjust for record latency” is for correcting plugin latencies of plugins that are located in the input channels of cubase. thats why you don’t notice any difference.