Does VS-700 Mess up Automated Mute?

I understand that automated mute cannot be controlled/written from the hardware console; however, I cannot make automated mute work when clicking it on the screen.  I have discussed this in length on the X1 forum and I am doing all the steps correctly: I switch to automated mute by right clicking; I write-enable the track; I click automated mute off and on on the X1 screen in track view; I can see the automation envelopes for mute in the track lanes—but it doesn't do anything.
 
Does anyone know if having the VS-700 console connected prevents automated mute from working?
 
Thanks.