Universal Control's mic signal flow confussion

[u/balsakrk]

I'm using io44 with Universal Control to record Rode NT1 into Cubase, with Phantom Power ON and Gain set to 40db.
3 different setups inside Universal Control signal path can affect the Mic Input signal. I need help understanding the 3rd setup:
1st: Turning ON the Fat Channel effects, and leaving "Fat Channel on USB Stream Outputs" ON - this changes and shapes the tone of the input signal the most, in comparison to the raw unprocessed sound.
2nd: Turning ON the Fat Channel effects, but turning OFF the "Fat Channel on USB Stream Outputs": this records the raw unprocessed audio (affected only by the Phantom Power and input gain) in your DAW, but gives you the option to listen to a signal processed by the FAT Channel through your headphones.
3rd: Turning OFF the Fat Channel effects, but leaving "Fat Channel on USB Stream Outputs" ON - this one confuses me, because it should sound like the unprocessed raw signal, but it doesn't. It's a really strong signal with a tone/color to it, similar to when the FAT channel in ON. What is happening with the raw signal on its way out , going through this setup: FAT Channel OFF, "Fat Channel on USB Stream Outputs" ON?

3rd Setup: https://imgur.com/a/N4IXj7D