Hi I have posted about this before and have a support ticket still open for Cubase 10.5 from before March 2020. Disappointingly the issue still remains in 11;
Please could folks try this too so I can confirm I am not going mad! 
This largely seems to affect melodyne. I haven’t tried it with spectralayers one yet.
To recreate
*Set the VST recording monitoring (in preferences) to anything except manual. I prefer Tape machine style myself.
*Record a segment on an audio track. Ensure that the automatic track monitoring allows you to hear the signal through cubase whilst recording and switches monitoring off when playing back so you can hear the recorded clip.
*use Ara extension on this clip to send it to melodyne and change a few notes on this recording. No change is actually needed but you have to pass the audio to the audio extension.
*(do not bounce/freeze the audio) this is a workaround but should NOT be necessary…
*shut the edit window for melodyne then on the same track after the melodyne’d clip try to record again in a different part of the project.
Issue: if you leave the track recording and watch some very odd behaviour occurs especially when you have loop recording and want to record multiple takes. the record indicator will get stuck. The track will remain red. The only way to stop recording is to click on the monitor icon for the channel and then you get an audio dropout error message. This makes using ARA in the middle of tracking impossible which is a PIA for my workflow where I often track a few bits then tweak the track more later. I have also discovered that sometimes multiple takes do not get corrected for latency so they can be out of sync.
Here is the issue in 10.5 Cubase 10.5.20 Bizarre Monitoring Recording Issue (ARA and TAPEMACHINE monitoring mode) - YouTube
I would rather not use manual monitoring, monitor through my audio interface or bounce down edits as workarounds and this really shouldn’t be an issue for such a leading DAW.