The nature itself of a MIDI controller remains the same, but can be handled in two different ways inside Cubase… either as data that goes into the MIDI Part (and can be seen in Controller Lanes in the Key Editor), or can be written in exactly the same way as is “regular” automation data (i.e. as Automation Tracks in the Project window). The mode can be chosen either globally, or per controller number, via the MIDI menu>“CC Automation Setup”.
When the mode is “MIDI Parts”, the volume fader and pan knob on the Mixer MIDI channel are “passive”… their initial status is “Off” (bypassed), or can be set manually, if necessary. Even if there is CC#7 data (i.e. MIDI “volume”), or CC#10 (Pan) inside the MIDI Part, it doesn’t cause the fader or the panpot to move.
But, when the mode is “Automation Tracks”, the volume fader and panpot do move, according to the automation written in their respective automation lanes. This option is of course to make MIDI mixer channels and Audio mixer channels behave in a more “integrated” fashion.
Did I just help, then, or make it look even more complicated?