If I were you, I'd keep on experimenting in order to determine if the issue is hardware related or software related. It could still be possible that you are missing something and the solution is nearby. If you are in Modular, go try every type of template (except the blanks) and see what happens.
If nothing happens, try and see what happens if you are using another synth. There are many free synths available. Try for instance Synth1 or TAL Noise Maker (in which you can also assign functions to buttons). If you find out that your controller responds normal elsewhere, it is likely that there's an issue with your settings and parameters and you may still be able to sort things out.