To get audio "into" melodyne you enable it to capture and then play through that section or the entire song.
After it calculates and creates the blobs, you are ready to start working on the blobs.
At this point and before you do ANYTHING, click play and it should sound exactly like it did before you loaded Melodyne. Mute the track with melodyne and play..... you should NOT hear it. If you do you have a duplicate somewhere. Find it and remove or mute it. More than one time I have forgotten that I had a duplicate track that was not muted and yeah, it will make you pull your hair out.
When you are satisfied there are no other tracks interfering, begin the manipulation of the blobs manually as needed. On playback from this point forward you should only be hearing the changed blobs playing back. So the pitch that you fixed will be the one you hear, not the new and the old pitch together. Melodyne does not work like that as that would make little sense in playing the old and new together.
When I pitch fix the tracks with ME, I tend to solo the ME track and one acoustic guitar or piano track for a pitch reference point.
One thing I notice is that you do need to stop the playback and NOT jump using your mouse to click on the timeline. ME will not follow the click and will keep playing as if there was no click while Sonar will see the click and jump to that point. ME and the music will be out of sync, so it is important to stop playback to jump around, or back as the need arises.
There should not be artifacts from a 50 cent move so that should not be the cause of the phasey sound.
Every sound in that track should show up in ME as a blob. music as well as clicks and pops....and more actually. I see things in there that are overtones that ME picks up.
Yes.... be sure you're in the right mode.... Melodic for a mono instrument or voice.
There's a lot to this program..... more than I use. Watch the tutorial videos on the Celemony web page..... I learn something new every time I go there..... not that I use it all....