Sustain Pedal CC64 not working in Cubase 8.5

Like Martin is saying, Cubase simply records the output of the pedal. If the pedal is in switch mode it should only transmit 0 and 127.

Cubase used to limit cc64 values to 0 and 127, but that was changed to accommodate pedals like the Roland you are using, which can transmit more values than on and off.

http://www.sweetwater.com/insync/half-damper/