Why Did My Panning Stop Working?!?!?

I have no idea what may have happened, but all of a sudden, my panning no longer works in Cubase Pro 8. When I pan left or right on an audio channel in the MixConsole (or even with a virtual instrument) I can see that the level meters on the channel respond, but I can still hear audio on the monitors and headphones in stereo. This is the case when I pan on the channel as well as the master output.

I have gone so far as to physically power off my MOTU 828x audio interface and have Cubase use the built-in input and output on my iMac as an input/output source (that’s the only source available as of that point). However, the problem persists when I pan left and right on the channel.

I tested this out with Logic Pro X as well as Garage Band on Mac OS X and the panning seems to work just fine there. Any ideas what might be happening?

This could possibly be related to the control room. Do you have it enabled?
If so, try disabling it and see if the problem goes away. If it does, then you need to configure the control room or leave it disabled.

I did have it enabled. Once I disabled it, I got my stereo panning capability back again. Now the problem is how to get the Control Room to work properly if i enable it again?

Took a peek at the manual (after a long time) and got it set up again.