Cakewalk - Orchestral template not hearing midi during recording

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Cakewalk - Orchestral template

MIDI channel 1 is the Piano. and the sounds are playing correctly until recording is active.
When Record is enabled, the piano sounds still work, but as soon as recording begins the piano sound cuts completely out, although the MIDI data is recorded.
If Channel 2 (strings) is selected with Record enabled, and recording begins it works as expected.  the strings are heard and recording at the same time.
What are some things to check about Channel 01 that would record data that you cannot hear?

All inputs: MIDI Omni and data is sent via external Keyboard.