CPU virtualization breaks existing projects

I had to enable CPU virtualization (Windows 10, AMD Ryzen 5 3600 CPU) for some work related stuff and this started to cause all kinds of trouble in existing Cubase 12 projects:

  1. Some audio tracks are not being played (no metering in console)
  2. Some audio tracks are not being routed to their group tracks at all
  3. Soloing track doesn’t do anything
  4. Sometimes it’s possible to hear some tracks in Listen mode

If I turn off CPU virtualization everything is working fine.

What’s the solution here? Is this a known bug? Is there some special setting I need to enable in Cubase configuration?