FW 1.12
The arpeggiator hold button doesn’t actually hold or latch the arpeggiator on the DMNO when in any of the “complex” play modes such as One-Two mode, Cycle mode, etc. (i.e. anything but the first three modes on the dial).
I’m not at my DMNO just now but I’m sure I have been able to get this to work previously. Have you switched on Hold on both layers? That definitely threw me initially.
I experienced a bit of weirdness with hold and note triggers / note off in general until I did a global reset by holding INIT. Not sure specifically what setting reset that may have impacted it but it seems like several people report random settings being configured at unboxing. My guess is they run a midi fuzz tester that changes things around while monitoring for basic functionality loss, but in any case this made my unit go from feeling pretty buggy to mostly as-advertised.
Yes, my unit came with the global tuning off by 1 semitone, this seems like a pretty solid explanation!
Global reset seemed to have fixed things up.