Why do the VS-700C not support X-ray Fading with third party VST instruments?

I've wondered the same thing about the bundled Fantom VS. 

-z-

Also  keep in mind that if you're using Sonar X64 bits, X-ray won't work with 32bits plugins.  

You can see it easily: when you open the plugin, if a new window open in your task, then you're running Sonar 64 bits and your plugin is 32bits opened via bitbridge, and cannot be x-rayed.

My experience is the opposite.  X-Ray works fine with RealGuitar, Play, Ivory, and other 3rd party stuff, but does not work with some of the built-in Cakewalk effects, and does not work with the VS-700 utility.
I run 64-bit and X-ray works the 32-bit plug-ins I have that use the bit bridge, so not sure what is happening to you.
 
I would say to check Preferences and your console to make sure X-Ray is turned on, but if it works with some things, then obviously it is enabled.

I run 64-bit and X-ray works the 32-bit plug-ins I have that use the bit bridge, so not sure what is happening to you.
       

Yeah? your 32-bits plugins work with Sonar 64?   Can anybody show me how to achieve this? On my setup, this is a rule, bitbridged plugs cannot be x-rayed.  Would be very interested to know more about this!