Creating region fx brings up melodyne greyed out with no available editing controls, immediately followed by licensing popup where it shows valid iLok license. I have full version of Melodyne, deactivated and reactivated iLok key to eliminate that concern.
Any ideas before I try rolling back?

Hi. Did you by any chance update to win 10? (I only have essentials) But when I upgraded to win 10, I lost my studio pc licence (everything was greyed out) and had to get in touch with Celemony to get it sorted out (was fixed within an hour. Great customer service there as well)
All the best.

I did an in-place Win10 upgrade some time ago; Melodyne has worked successfully since then, until Ipswich.  Melodyne Editor works fine in stand-alone mode - this seems to only happen within Sonar.  I rolled back to Hopkinton and that did not help.  Just for grins I installed the essentials version from Command Center but that did not help either - there is only one instance of Melodyne recognized withih Sonar, so apparently the mix-up on the full program prohibits Essentials from being implemented at all. 
 
I have emailed Celemony to see what they recommend - still, a boon and a bane with the new Sonar release model - suddenly things break and you're left wondering what the hell happened.  So much for being productive today.

OK, this is super-bizarre.  I opened a different project and everything works fine - there is something within this project that prohibits Melodyne from working.  No matter what audio I attempt to test region FX for Melodyne, any attempt shows up greyed-out, followed by the licensing popup (which is un-actionable since it shows a valid iLok registration in place).  Looks very much like a Sonar bug.
 
Update: I have re-installed Ipswich and I find that some projects exhibit this bad behavior while others do not.  I have no idea what the differences could be - why it works in some projects and not in others.  In all the tests I made sure to SAVE under the Ipswich installation to make sure I was comparing apples to apples with regard to the Sonar release version.  Totally stumped.

I too, have had Melodyne Celemony issues, after the last update. If I drag a wavefile to a midi track, Melodyne will work till the file is half-way completed. I have tried smaller clips, increased buffers, different projects, re-installed Melodyne, all with no success. It worked flawlessly before the last two upgrades.
Does anybody have any other suggestions? I use this feature quite often.

I've had several problems with Melodyne/Sonar ever since X3 Producer.  Haven't installed Ipswitch yet but I did continue to have problems in an earlier Splat release.  Sometimes I'd get the grayed out window, other times Sonar would crash while opening a project that contained instances of Melodyne.
 
As far as I can gather, there was some sort of conflict between various versions of Melodyne (VST2 & VST3), so I ended up manually deleting all but the VST3 .dll from my computer, then did a re-scan.  That seemed to do the trick.
 
I also make a habit of bouncing Melodyne-processed audio so I don't have any instances of the plugin when it's not actually in use. I still hold my breath whenever I use Melodyne simply because it's been glitchy in the past, but the steps above have been a good workaround for me at least.

Try doing a bounce to clip before opening up Melodyne.
 
It might help, it might not, but it eliminates one factor.

You can try a VST reset, then a rescan in Sonar preferences.
Also try repairing Melodyne in add/remove windows programs.

streckfus
I've had several problems with Melodyne/Sonar ever since X3 Producer.  Haven't installed Ipswitch yet but I did continue to have problems in an earlier Splat release.  Sometimes I'd get the grayed out window, other times Sonar would crash while opening a project that contained instances of Melodyne.
 
As far as I can gather, there was some sort of conflict between various versions of Melodyne (VST2 & VST3), so I ended up manually deleting all but the VST3 .dll from my computer, then did a re-scan.  That seemed to do the trick.
 
I also make a habit of bouncing Melodyne-processed audio so I don't have any instances of the plugin when it's not actually in use. I still hold my breath whenever I use Melodyne simply because it's been glitchy in the past, but the steps above have been a good workaround for me at least.

That did work for me. I did delete the VST2 files, rebooted and the midi transcription worked again.
Thank you very much for the information.
Creative music continues!
 

Glad to hear it. I did upgrade to Melodyne Editor after I tried the Essentials version that came with Sonar, so perhaps that resulted in extra .dll files and I didn't notice any issues until I'd done that, so perhaps that contributed to the problem. In either case, nice to hear the "VST 3 Only" approach seems to have worked for you as well.