You may need to change the algorithm it is defaulting to for your specific content. I’ve seen something like this in the past, where, instead of thinking the content is melodic or polyphonic, it will show this sort of thing (maybe for just percussive?), but switching to the algorithm that is appropriate for my content gets the notes as expected, be they monophonic or polyphonic. (I have used the latest Melodyne 5 Studio in Cubase Pro 14.0.10 recently in polyphonic mode to help me figure out chords from a recording, and I think I may have initially encountered a similar thing there, or maybe it was just trying to use monophonic notes before I told it to use the polyphonic option – I don’t recall for certain, only that I had to change the algorithm manually.)
I am also battling with Melodyne and CB 14. I think Melodyne Essential and Assistant can only handle monophonic parts. Even though the options for polyphonic input are there you get grey notes that you can’t do anything with. Melodyne Editor and Studio have full polyphonic options.
Also Melodyne as an insert offers Edit Mode but as an extension you get Track Mode and Clip Mode…but track mode is greyed out. I don’t know why?