I neglected to read the updated manual section after installing new firmware on the se02.
There is now an option for Midi Out to work also as a Midi Thru at the same time in the System Setup and this by default is On, after an installation of the new firmware.
Therefore, that was the source of the midi loop.
Fabulous.
Actually i learned something cool in all of this …
The Octatrack’s “CC Direct Connect” allows for dial tweaking on the external device for p-locking on the OT’s midi channel sequencing of the external device. Way cool.
A few hours of confusion for a bonus kernel of valuable information.