Read automation works only after stop/start in Cubase 10.5/Windows 10

I have a strange issue with read automation in Cubase 10.5 under Windows 10.
I have an audio track which has monitoring enabled, so I can play a hardware synth live with a playback from other tracks in the project. I would like to mute that track only at certain parts of the tune, and have it playing in the other parts. Tried to achieve that either with mute or volume automation, but Cubase doesn’t trigger the automation properly - if the track is muted initially, or its volume is 0, it doesn’t unmute/change volume where I have the jump in automation while playing. If the song position passes the threshold, the automation is followed only if I stop and then start the playback. Again when it has to change from unmuted to muted state, it doesn’t mute the track until I stop and start again. I think this used to work before properly but stopped working recently.

Can you provide a screen shot please?
The track with both automation lanes…(Mute and Volume)
Maybe an additional one from the automation panel…

Here is the requested screenshot. So initially, when the cursor progresses before the 3rd bar, I don’t hear anything when playing - as expected. When the cursor enters between the 3rd and 5th bar, I should be able to hear my playing, but it is still inaudible. I can hear my playing between the 3rd and 5th bar only if I stop and start the playback while the cursor is between those bars. Then, when the cursor goes past the 5th bar, I should not be able to hear my playing again, but still I can hear it, until again I stop and start playback - then I cannot hear it anymore. This is a fresh project, so there is nothing else which could interfere. I just updated from 5.10.20 to 5.10.30, but it is present on both builds.

Automation panel?
Are there initial values set?

One thing I don’t understand is, why are you using both, mute and volume automation?

It is Artist edition - seems there are no automation panel and initial values?
Initially I’ve been using only volume automation, but as it stopped working, tried the mute automation - it doesn’t work with neither of them, as it doesn’t work with both of them. In the screenshot I included both lanes, so it is visible in one picture how I have them configured.

Is this all used automation?

Yes, this is a brand-new project, and I touched only these two automation lanes.