MIDI not recording to grid

[sl23]

I'm trying to set up a comparison of two VST synths and have set a 4 bar loop to repeat.
But every time I record it it's not quantizing the notes to the grid I've set, they are recorded as played. Am I doing something wrong or is there a bug?
BTW, grid is on and set to 1/16th.

I also had to sort the metronome out as it wasn't playing during record either. That seems fine now though.