Thanks for the hotfix (it seems to work), adding my data point:
Got the issue specifically with the last Cakewalk update (I was working on a project, it was fine; installed the update, resumed work, it was no longer fine; in the meantime no Windows updates, I'm running 7 so I can be fairly sure, no other updates I would know of), reinstalled everything, removed all my plugins, still had the issue.
The most relevant info pre-hotfix: driver mode WASAPI Shared (because I'm cheap and only have on-board audio), Mixing Latency settings fixed and cannot be changed.
Post hotfix: still WASAPI Shared, Mixing Latency settings actually still fixed and cannot be changed but the noise and dropouts are no longer there.
See also screenshots (sorry for half of them being JPGs, I didn't notice they were being saved like that).
Looking forward to seeing it permanently and officially fixed but good job nonetheless.