So what? Then what's the solution? RMA again??? Why are all devices now defective? This is just tons and tons and tons of trouble for no reason! This should work out of the box.
I have similar issue, with Ableton Live 11.
But if the buttons were faulty, they would not work, at all, even with Analog Lab standalone. This is most likely because the controller sends non-MIDI signals through the USB bus that only Analog Lab is able to understand, similar to what ROLI did with the Lightpad. This is a very bad mistake that seems to be repeated again, again and again. This can be as bad as requiring to wait for the next MAJOR release of your DAW to get this sorted out. I really hate to be pissed off and sold fake products. This is NOT a MIDI controller if it requires extra non-MIDI signals. I cannot find any pure MIDI controller without USB to be extra sure things will always go through straight MIDI, no non-MIDI cheating to be fancy.
I know it could work standalone without the DAW, but that allows no recording of music. This results into this device being just a toy for kids. It needs to integrate with CURRENT DAW, not DAWs for next year! I imagine some people had success with some DAWs and others are just left over.
A possible workaround that I don't want to use but could be of some interest: a two-computer setup where one machine would run Analog Lab standalone, send audio to a small interface, and a second PC with the DAW, and another audio interface to get the signal. I continue thinking there has to be a better way, transferring audio through Ethernet, but Dante made a proprietary protocol with artificial requirement of having Dante hardware in the network, while Gigabit Ethernet could without problems transfer audio through the network.
There are also third party virtual audio cables that could help avoid the two-computer setup, while using Analog Lab standalone and the DAW in another process, but they are not compatible with ASIO, and some DAWs like Live cannot interact with more than one audio interface, so I cannot use ASIO for the main interface and add a track using virtual audio cable as input.
I'm thinking about putting this controller away, waiting for next Ableton Live release. Very disappointed.