Logic Varispeed 'Speed Only' mode transposes MIDI but not audio

When VariSpeed is active and set to "Speed Only" mode, it transposes all my MIDI, including the incoming MIDI notes. However, the audio does not change pitch. This is really odd behavior. Is there a preference that could change this? It states in the VariSpeed Mode name that it affects only the speed, so how can it change the MIDI pitch?

This must be a bug, right?

[Re-Titled by Moderator]