I had this issue with 9. Now having the same issue with 9.5. I attached a pic to show the problem.
In 9.5 when I mute a lane, the lane before it isn’t audible -even if it is unmuted. In 6.5 whatever lane is before the muted lane will be audible -as long as it’s unmuted.
Any help would be seriously appreciated.
Aside from that I absolutely love the update
Hi - I might have missed something, but in the C9.5 project it looks like you have the main part (in the main playback track) muted (greyed) anyway, whereas in the C6.5 project it is not. You know, the very top track of your comp (don’t know its proper name). Not at my machine today to check myself… 
You say you had this issue before, but, is this with every project or just this one? What happens in a brand new project started in C9.5…? I certainly did not have this problem before in C9 (not tried in C9.5 yet).
Good luck.!
(also, please add some info to your signature about your system - it helps longer term.!)
This is likely due to a preference setting called ‘Treat Muted Audio Events Like Deleted’. Change this preference and it should get you where you want to be.
Thank you J-S-Q that did the trick
Puma - this was happening with older 6.5 projects as well as 9.5 projects in Cubase 9 and above -since it was a setting in preferences.
