I checked it out (briefly last night) and my setup is identical to yours John (except the output on Cithulhu (on mine) goes to Master (IIRC). Found out some strange things were going on with this plugin.....
On the same project (Cthulhu, Alchemy, and also BlueArp (just to play around/test)) was opened.
I just pushed 1 key on my midi controller and could hear BlueArp + some odd scale (diminished to outright weird notes) were playing.
I deleted the BlueArp and only had Cthulhu + Alchemy.......now, the Arp function and Chord function both worked. Of course, it started playing some very high pitched arp patterns when I pressed low notes on the controller and some weird patterns (nothing melodic) were playing. Adjusted/tested/pushed buttons and other patterns in Arp & Chord and then they both played as it should.....
I really don't know what caused it nor what triggered it to work...... most peculiar mama.
When I have more time, I'll try to figure out what caused it.....