I just did an experiment and was able to get octave notes fine.

1) Recalled "Init Normal (AWM2)" as a starting point
2) Pressed the record button to start recording something to record to an ARP. Defaulted to the pattern recorder - but I switched it to "MIDI" (the old performance recorder).
3) Set the tempo really slow for accuracy. Started recording and played a pattern of 3 quarter notes. One quarter note of an "A", next beat a quarter note "A" an octave up, then 3rd beat a quarter note "A" the same as the original note (an octave down from the 2nd note). Pressed stop.
4) Saved the MIDI file to have a backup of the original recording.
5) Pressed the song name which gives me an option to convert to ARP. Pressed option to convert to ARP
6) ARP: Left all defaults except changed convert type to "Fixed" and changed the name to "Joct" so I could find it in my user arps.
7) Repeated step 5-6 (starting with loading the saved MIDI file) and 2nd time named the arpeggio "Joctorg" and changed the convert type to "Original"

Then I went into "Init Normal (AWM2)" PART 1 (the only PART) and set the individual ARP #1 to Joct (fixed arp type). Pressed a key and I heard the "A", its octave above note, and the original "A". No matter what key I pressed I get the same notes out. That's what fixed is all about.

Then I changed the arp #1 individual setting to "Joctorg" (original notes type). This user arp played a quarter note, a 2nd quarter note an octave above, and then the original quarter note. "Original" unlike "fixed" will play a different note depending on what keyboard piano key you press. The pattern is transposed according to which note is pressed.

In both cases I heard octave notes.

I'm guessing you didn't start with an initialized Performance - and therefore have to deal with who-knows-what that's been programmed in the Performance in terms of various settings. When you say "drone" that makes me think the arp playback isn't set to "Sort" - but instead is in a mode where the arpeggio allows for your pressed key to not only trigger the arpeggio but also pass through notes to the tone generator.

When I play the pattern back it sounds perfect. When I save it as a User arp and apply it to the part, it doesn't play the higher notes. It just plays the lowest droning note.
I've tried all 3 conversion types and I never get that arpeggio to match the recorded pattern.

Data recorded to the Sequencer can be played back and sound exactly like you recorded it.
Data converted to an Arpeggio Phrase does not, necessarily, when triggered, play exactly as recorded.

Discovering the differences between Sequence and Arpeggio
Sequences can be started by pressing a button
Arpeggios must be armed and ready (both a Part Switch and a Master Arp Switch must be engaged) and then a note-on in a specific note range and at a specific key velocity is used to trigger it.
Sequences make no changes in the note selection
Arpeggios can make changes in the note selection following the criteria you used to convert it and the Key Mode setting.

The three conversion Types for Arp creation include one that plays (once properly triggered) exactly what you input from the MIDI sequence data. This Type is called “Fixed”, for Fixed Note. Excellent for Drum/Percussion phrases, or Note-Ons that trigger an audio clip or event which would always be assigned to a specific Note number... like a sound effect.
Chord intelligence is a big part of the Arpeggiator function. Here the source data generated by pressing keys is used and the result adjusted to match chord recognition rules. It plays the Phrase, just like “Fixed”, but adjusts the notes to match control information coming in real-time via the keyboard. This Type is called “Org Note”, for Original Note. You input the Note that will trigger the original phrase. It can determine the root, and can the adjust for key changes by a set of musical rules... (major, minor, diminished, etc)
If you want the Arp Phrase, when properly triggered, to play exactly what you played, use “Fixed”.
If you want the Arp Phrase to play and dynamically change Key and chord quality, use “Org Note” (This determines the root and the key that will cause the Phrase to play at that pitch).

A single Arp can contain both of these Types of conversions — you have four input sources (tracks).
Example, a guitar strumming Arp might contain two tracks, one set to chord adjust (the guitar strings), the other to add the raking noise of pick on string which is a sound effect assigned to a specific key.

I actually did start with an initialized performance because i created the sound from scratch.
But i did not choose MIDI as you did.

I chose the part, then edit, then just used the rec/play button and went into record.

I will dig into this again Monday. I appreciate both your responses.

As it stands now, i got myself into a situation where nothing plays (I have a solo sound on scene 2...this is the Tubes song, btw) unless I click on the part! So when i pull up the performance, nothing plays. If i click on part one, i can play the part. When i call up scene 2, nothing plays unless i touch part 2 first.

My first time seeing this.

As it stands now, i got myself into a situation where nothing plays (I have a solo sound on scene 2...this is the Tubes song, btw) unless I click on the part! So when i pull up the performance, nothing plays. If i click on part one, i can play the part. When i call up scene 2, nothing plays unless i touch part 2 first.

My first time seeing this.

You can *store* in a Scene which of the first eight Parts you want to be on the keyboard when that Scene is recalled.

From the HOME screen, touch “Scene”
The current Scene is shown in bright blue along the top
On the MEMORY row, activate the ON switch for KBD CTRL
Touch that option to see the KBD CTRL icon for the first 8 Parts
Green activates that Part as the default Part to sound when this Scene is recalled. You can activate more than one.
Grey means in active... but
You can still manually *select* a Part by touching it directly...

If you wish to memorize a particular Part to be active for a Scene, recall the Scene and turn On the KBD CTRL MEMORY switch and activate the KBD CTRL icon for this Scene.

Yeah - this is a keyboard control "bug" you've placed in your Performance. Not a bug in the sense that the instrument has a flaw - but a setting that's easy to arrive at that infects your experience in a such a way. Self-inflicted.

Once keyboard control was a thing that could be saved in scenes - I've run into situations where it seems that my instrument defaulted to turning keyboard control OFF - when I never or hardly want to turn this off. For now my "workaround" (or just learning) is to constantly double-check what's going on with keyboard control inside my scenes. If I really never want to deal with keyboard control - it would be better to turn off the memory "switch" altogether (meaning don't save this at all - touching the scene button won't alter the state of keyboard control on or off and will keep it the same). Call me lazy - but I don't (usually) work like this and am OK with keyboard control to force ON or OFF - meaning have the memory switch turned ON - and just double-check the keyboard control icons for each scene.

One must always be careful what you ask for...

Automation of any kind, is designed to work for you, making changes automatically at particular moments in your performing. However, once you begin to use it — yeah — you kind of do have to be alert.

When working with the Sequencer live, you want to lock in what sound is initially recalled when you recall the Pattern, the Chain or the MIDI Song. The system allows you to Store the active Part.

However, if you are going to use any type of automation, you want to think it through. You’re structuring certain changes to take place and usually you do this with a clear picture of exactly where you are and where you are going next. Forget this at your own peril. This is not a bug... a “brain cramp” is more like it. The equipment is only doing what you told it to do (whether you are aware or not) but it is hardly even a “bug” in parentheses— it’s user error or a misunderstanding — the last change you make is going to remain.

So once you place a MEMORY Switch On, say you activate a KBD CTRL selection for Scene 1, if you don’t realize (initially) that it now matters to all the Scenes. If you then automate a change in Scene 6; once you select Scene 6 it will remain at your new selection from that point on (persists)... unless it sees another KBD CTRL activation in the next Scene you select it will remain where it was. (Same would be true if you used a program change).

If you use automation to fade out a Part to 0, it will remain faded out (0) until it ‘sees’ a volume command to change. So once you open the can of worms that is automation, you must start to think through *where* you are and *where* you are going next... and what condition you require.

The convention of having your lead sound in Part 1 is a good one — but it is by no means forced upon you, you can STORE whichever KBD CTRL Part you desire (or none) to be active — and having KBD CTRL active is always overridden by manually *selecting* a non-KBD CTRL Part directly

Changing active KBD CTRL Parts per Scene allows for seamless transitions between the sounds you are playing and is in lieu of the old practice of inserting Bank Select and Program Changes, which summarily cut off the sound when executed. If you wish to have a different sound you move to a new Part... the Scene Memory can automate which Part or Parts you want to play with each Scene.

If you want to maintain the ability to move freely (recall Scenes on-the-fly) then once you input an automation, you must plan ahead or you’ll be scratching your head about why it’s not changing back. Knowing what items RESET and what items PERSIST is a user responsibility. Basic MIDI, really. If you were inserting program change events into a linear structure it would be so very obvious (You want a change you must insert an event, it doesn’t change back later in the structure unless you insert an event) it’s fundamental. If you some how “forget” that you’re working on looping structures, your ‘error’ will soon remind you).

Extra Credit:
Added in the most recent firmware update is the ability to overdub controller movement. You can rewrite just controller movement without erasing the note data simply by placing the Pattern sequencer in REC TYPE = Overdub; moving any controller will rewrite the data for the *selected* Track without disturbing the MIDI Note-On events.

Success! Thank you guys so much.

So now I've got the arpeggio for "She's a Beauty" and the ability to use the Superknob to morph between a flute and a square lead on the solo (a solo I've never seen anyone play live, I might add).

I'm gonna be a superstar. 😀

The last thing to nail down is that ARP 2600 "Whaaa" sound he uses at the end of each phrase.

This community is so helpful, sort the chatiw issues in no time. That's so good