I posted incorrectly to an old post that said SOLVED. Sorry about the previous post!
I am perplexed. So I worked in Melodyne 2 Editor most of yesterday afternoon, using the Region Effect. No problems. Do a bit of work today, but when the blobs move there is no audio. The vocal track plays normally with correct volume. The green meter in Melodyne is moving. Per Craig's suggestion in this thread, I made sure Input Echo is enabled on the channel. Reboot, no audio. In fact, Melodyne/Region Effect doesn't work on any track on this project, as well as others I have used Melodyne on recently! However, I do get audio if I put Melodyne into the FX Bin and transfer audio in - blobs make noise :-)
What am I missing? Is a re-install in order? Any help is appreciated!