do this test:
- start Cubase, no project, just show the transport bar → fader must move to bottom at startup
- check the midi incoming activity indicator at the transport bar:
a) each time you touch the fader, the indicator must show this:
b) touch it and keep the finger on the fader → one single indication
c) lift your finger → one single indication
d) touch the fader and move it, → multiple flashing of the indicator while moving the fader
If this works, then probably the hardware is ok.
You should also see at the MIDI Monitor Midi Insert at any midi channel the Controller cc7 event.
Or use a 3rd party tool to check the incoming midi like MIDI-OX:
a) fader moves will trigger pitch bend events
b) touching and releasing the fader will generate G#7 note on/off
Hope this helps to check if the HW is ok.
Best regards
Marco