You have the wrong idea about how record latency compensation works. Plugin delay compensation works in the opposite direction than record delay compensation. PDC delayes the playback of the project further by the highest reported track latency while all other tracks are delayed by the difference to that track as well to match that latency.
Record latency works in the other direction. Due to the fact you play against the output latency and the recorded audio is even further delayed by the input latency it is recorded too late. It has to be moved back to match the intended time position in the project. Cubase does that by moving the audio to the left by a whole roundtrip. Midi has no input latency as audio does. If you would move it back a whole roundtrip midi events would be positioned too early in the project.
So its not the midi events or the audio from the instrument that has to be matched with the audio recording. In fact both types of recording are moved back to match the project time code as they were initially recorded too late. Audio by a rtl and midi just by the output latency since it has no input latency and therefore was recorded earlier than the audio. Your test you made purely used live monitoring that was looped back. Since Cubase will not compensate live monitoring this test is not suited to judge how cubase really compensates for latency.
cubase doesn’t compensate live monitoring as it is realtime dependend. And i still think you don’t understand the nature of the ALC function you can switch on and off on instrument tracks as this function has nothing to do with the overall latency compensation for recording.
this is not what i said. Ok let me try again as you really seem to have a problem understanding this.
If you have a high latency setting the monitored audio of your instrument will be noticably delayed when you hit the key right?
Now imagine you play to the click. If you hit the key right on the click the monitored audiosignal of your instrument will be delayed by the output latency right and is therefore behind the click by the output latency?. If you will hit the key on the click and you can handle that the corresponding audio is behind the click you will not need this function. I wrote that allready.
Many people have difficulties to play right on the click if the instruments audo is behind the click due to the high latency. You will tend to press the button before the click in order to have the live monitored audio of you instrument on the click. exactly what i showed in my pictures. If you managed to hit early enough to have the audio right on the click you pressed the button too early by the output latency. The midi notes now will be upfront. to correct that the ALC will move them to the right by the output latency.
Is this really so difficult?
My test show that this works exactly as it should. Don’t you see that?