In the Transport I have “Common Record Modes” set to “Start Recording at Cursor Position” but when I am on beat three in a 4/4 bar and I hit record the cursor jumps back to the previous bar line then begins recording.
Yes, you can definitely start half way (or anywhere) through a bar or not on a beat at all. I don’t think it’s the snap settings though.
The only way I can reproduce this issue is by turning the metronome pre-count click on, then it does go back to the start of the bar (which does make sense to me).
If you want to start recording part way through a bar but want to be in time(!) the easiest solution is to use punch-in.
The “problem” (really a “feature”) has nothing to do with snap settings.
In Transport>Metronome Setup>General>Click Options>Click During Count In
If checked then the cursor (during MIDI recording from anywhere except beat one) begins at the previous barline.
If unchecked then the cursor (during MIDI recording from anywhere except beat one) begins at the cursor.