On Windows 10, using version 3.8.3, any MIDI file that I play back through the app after recording shows the notes being sustained, even with the setting turned off. It seems to be doing this even with some of the sample MIDI files like Etude Op 25 no 6.
First screenshot is of the sample MIDI file, second screenshot is of my test MIDI file (even though they both say Etude at the bottom).
I've tried turning the setting on, then off again. Restarted the program as well as my computer. Still does this when playing back the MIDI files.
Version 3.8.3 on Windows 10, with a Casio CDP-S100