Trying to connect my Babyface Pro with Cubase

I have my Babyface Pro routed to my Control Room in the VST Connections set-up.

I’ve naturally disabled the ‘outputs’ because that would create a dual signal and it would start distorting.
The weird thing is, when I remove the ‘Stereo Out’ in the ‘outputs’ section I get no sound, even though I have connected my Babyface through the Control Room. Why is that?

Also, when I do get sound my signal starts to clip and distort for some reason. And to work around that, I have to use the control room knob and turn it down to about -13dB. Why is this happening?

Am I doing something wrong in the RME Totalmix?

You have to connect your outs in the Studio tab of VST connections, and not connect them in the Output tab.