Thanks very much for the changes in behaviour, with my Pico and 1.2.5 the problem is gone.
Nick here is my attempt to add to the explanation Jim gave:
By default EigenD already sends midi out from the virtual Eigenlabs midi, even when nothing/null device is selected in the midi output browser. So unless you need to send midi out to a different interface, dont select anything.
Likewise EigenD is also listening to midi on a virtual Eigenlabs midi input port., even when nothing is selected in that browser screen.
So if you just want to receive midi in a DAW via Eigenlabs 1 virtual midi interface, you dont need to select anything in the EigenD midi port browsers.
Now whats confusing you this time, is that the virtual Eigenlabs midi has the same name everywhere. If you are actually selecting Eigenlabs 1 in the midi output browser, then what you are actually selecting is the virtual midi in that EigenD listens to, so you are recreating the unwanted loopback. Likewise if you select Eigenlabs 1 in the midi input browser, you are telling it to listen to the midi out from EigenD, and this creates exactly the same unwanted loopback effect.
You are only suffering from a bug if you are not selecting anything in the midi port browsers and are still having loopback problems.
I dont know if it is possible for Eigenlabs to make the naming of this stuff a bit clearer in order to avoid the confusion that Nick is having, as I doubt he will be the only one - I only figured this out myself via trial and error. Im hesitant to say 'hide the Eigenlabs midi ports from the browser completely' just in case there is a scenario where feeding output back into input makes sense, I dunno. Certainly the situation is much improved from earlier 1.2.X versions because the default state is now sensible and free of loopbacks.
Cheers