N7 and GA

Hello,

I saw a video where the user took Groove Agent Se and drag and dropped a beat pattern onto the instrument track, and it created a midi part right into N7.
I attempted the same thing and nothing shows up. Do any of you know if this a setting that needs to be changed in order to drag and drop the midi groove?

Check your MIDI import prefs.
MIDI_import_prefs.jpg

What setting am I looking for here?