UR22 MKII No Direct Monitoring Option

What I would like to do is hear the VST plugin while I am playing instead of just the straight sound of the guitar (Such as playing without an Amplifier).

Turn the mix knob fully to Daw.

From what I have read this is possible by enabling direct monitoring. Well, in Cubase that option is greyed out, so I cannot select it. Furthermore, when I do select the monitoring option on one of the tracks I get very loud feedback coming through the speakers. Is direct monitoring something that is not available on the UR22 MKII.

UR22 has a hardware based direct monitoring (direct/daw mix knob).
The greyed out option is for higher UR models with DSP features (UR242, UR44…)

As for the feedback, check if you don’t have the loopback function enabled.