I am on a brand new Mac Pro running Catalina (10.15.7). I have been experiencing this as well, and have been able to narrow it down to a singular cause on my system.
I am running VE Pro 7 server locally on the Mac Pro, and on an external PC. I am getting a loud noise burst, which renders the VE instance unusable until I disconnect, and reconnect the instance. The noise is not present in VE, and only present in Cubase. If I Disconnect the instance, the noise will remain until I reconnect it.
I have found that disarming the record on a midi track while playing back is the cause. Cubase would always hiccup with VEPro when doing this, but on my new system it is causing this epic burst of noise that does not go away until you re-initialize the VE Instance.
Can anyone else confirm that this causes the issue on their system?
Hopefully this can be resolved soon!