Just saw your email. Here's what's going on.
With LOCAL OFF, MIDI CLOCK set to SLAVE NO S/S, normal mode sequencer will not run as the mode requires a MIDI play be received. LOCAL OFF causes the sequencer to not trigger from the play button, but the sequencer will not respond to a MIDI start because the SLAVE NO S/S message.
In this case, we'll likely need to have the normal mode sequencer respond to the PLAY button when LOCAL is off.
For the moment, you can set LOCAL ON or set MIDI CLOCK to SLAVE.
Hope this clears things up!