In short both.
Hitting the pad during sound design is far louder than when recording.
The volume of the click can be adjusted - nonetheless, this has never been an issue, even with the softest of sounds.
Even though I cannot hear it as I hit the pad during recording, as soon as I disengage from Recording and disengage the Click, the Kick sound starts to come in (slowly increases in volume and then sustains at the correct fixed velocity after 1 bar).
It is as if there is something modulating the velocity of the sequence itself in the beginning.
Also, following some great sound design advice from the Tempest Recipes, trying to replicate the Kick using just the filter doesn't work the way it's supposed to. It's as though there is an LFO somewhere modulating the resonance - I've checked everything and as I am quite comfortable with synthesis, I cannot figure out why this is happening in the audio path. Everything is off - FX - LFO's - triple checked feedback, envelopes , settings , etc etc...
Am getting a new one today so will see if it is down to insufficient user IQ or a faulty box. Pain in the ass if I'm honest.