I discovered this
feature of Tone2's plugins myself several months back. They immediately sent me working replacement VST .DLLs. Despite what Tone2 says the issue is NOT a problem with iLok. It is an issue with the way that they designed THEIR plugins.
The presence of iLok on a system may trigger their bug, but that's not iLok's fault. The fact that they have working replacements in-house pretty much confirms this. They just appear to be very lazy with updating their installers. I also suspect that the replacement .DLL versions that they send you have copy protection disabled, which is why they say that you have to
buy the product to get the fixed versions.
This one rest solely on Tone2.
-e.B