I talked with someone at Electro Harmonix. He seems to think it’s a bad ground, and I’m sending in to be repaired under warranty.
I just picked up a Bass Microsynth and am having the exact same issue. I also tried the gain adjustment. I tried plugging it into two different amps, and the same issues persist.
It works fine when I run it through the effects loop, but that’s not how I like to use pedal effects.
I guess I’m just piling on, but I intend to call EHX tomorrow to see if they can offer some kind of tech support.