As Novikthewise pointed out, “Adjust for Record Latency” does have an effect after all. When it’s enabled (the box is checked) the latencies of plugins located on the input bus are compensated for (i.e. their latencies are removed) during the record process. As shown in the following demonstration results, Cubase 9.0.10 did this quite accurately even though the latencies provided by its Plug-in Manager were wrong for two of the three plugins.
The 1kHz square wave test tone from a Behringer CT100 Cable Tester was used as a signal source and, as shown in the setup jpg, the plugins were bypassed to facilitate the analysis.
