MDE-X v2 plugin doesn't respect insert bypass in Cubase 14

I’m having problems with the KORG MDE-X v2 plugin. Bypassing the insert on the mixer or inspector does not have any effect. So I have to open up the plugin itself and use the bypass button in the plugin’s UI. Does anyone have the some plugin or have the same issue with some other plugin? Not sure if this is an issue with the plugin itself or some sort of Cubase compatibility issue with specific types of plugins.