Tone match .. funky results

Tahoebrian5

Fractal Fanatic
This is the first time I've tried to use the TM block on the 3. I'm using it at the start of the grid as a pickup/guitar tone match. I've done this with the 2 and worked effortlessly. So anyway, I input my local and reference signals, the results are sounding really funky but that could just be user error. What is really odd is after doing the match to get the TM, the blocks seems like it is creating a delay effect. If I stab a chord then mute quickly there is definitely a delay and sounds somewhat overdriven. Bypassing the TM block and the delay is gone. Any thoughts?
 
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