To you last question:
Adjust for Record latency
Here i loop back recorded a played back audio track physically through an analoge loop back without any plugins in the input channel that is used as input for the second track (lower track). “Adjust for Record latency” has been turned off. I get a sample accurate recording. Cubase has correctly compensated for the RTL
Here i placed the REVerence in the the input channel that is used as input for the loop back on the second Audio track
You see that the plugin latency of Reverence has not been adjusted for.
Here the same as above with “Adjust for Record latency” activated
You still didn’t answer my quetion yet. Wanting Cubase to work properly isn’t much of an answer to that.
What exactly is it you want to do and were arises a Problem from what you have shown us so far?
Because you Test has no relavance if cubase is used the way it is intended to.