I think some confusion here comes from the fact that in Cubase depending on where you activate bypass (mixer slot vs. plug-in window) it’s either using host bypass or relying on plug-in bypass, disabling the bypass feature if the plug-in does not support plug-in side bypass. I wish it would just fall back to host-side bypass for that button if plug-ins do not support bypass - as it is now, it basically forces all plug-ins to implement bypass even if it does not make sense for the given plug-in since it doesn’t do anything special while bypassed and host-side bypass would be preferable and yield better performance.
Best,
Stefan