POSSIBLE BUG: MIDI keyboard won't input rests

Thanks for the video. I’m still puzzled because it does work for me here, also if I’m in insert mode.
So I wonder what it is that causes your problem.

It would be good to get the log information of Dorico in that case. So please, do similarly as in your video,
then go to the main menu and choose Help > Create Diagnostic Report.
That will create a zip file on your desktop. Please send that one plus your Dorico project to u dot stoermer at steinberg do de.