Actually I will say no don't use WASAPI. I use a laptop for pure midi work and ASIO4all is solid as a rock. It has come a long way and had a bad rap around here and for good reasons. But for me it is as smooth as using a real interface.
I've been using it without issue for over a year. Loopback tests of audio come back bang on. WASAPI is late.
It sound more like your just not setting up your input. One thing for sure is Air stuff is real weird about using obscure channels. I always have to use CH2. And I'm having issues with Mini Grand defaulting to a terrible patch with a ton of reverb. It seems to ignore Sonars patch assignments. Anyhow try setting the midi channel to Ch2.
There is 2 places to set up a midi tracks ins and outs notice the little tiny square icons.
I= Input, choose your controller and always use OMNI.
O= Output direct this to the VST instrument
C= Midi Channel- this is where you would choose Xpand2 Channel 2
B= Bank most I set to NONE, depends.
P= Patch set the patch