Ok, had a quick check…
I’m on C10.0.40, Win 7, Tools for MR v1.7.5. I have 4 MR units - 3 daisy chained together and one patched in via ADAT. TBH I don’t actually use the REV-X and channel strip much nowadays (having several daisychained units apparently compromises direct monitoring capability). I tested both with both the whole rack patched up, and also with just a single .CSX unit connected via FW. Same result.
Like you I can only click the slider to positions 1+2, upper and mid, so can only achieve Bypass, or FX on Monitor signal only. To acheive position 3, both monitoring and printing the FX, it seems I would have to load them as inserts and copy the settings over from input side, which (for me) is not a huge deal, but as you point out isn’t how it is described in the Tools for MR manual, and certainly is not as elegant!
I’ve been using the MR units since C5 and whilst I love them, they haven’t been without occasional quirks regarding Cubase integration, especially as regards this hardware panel for the mixer. and also the Audio Hardware Settings panel. Things got pretty bad for me around the time of C8.5 but now on C10 they seem to do fine.