[Elecraft] Question on Squelch

[Lynn Lamb, W4NL]

On page 56 (SQ MAIN) of the K3 manual the set-up describes nicely how to use 
the squelch, but it doesn't work on my K3 with version 2.67.  Do I have a 
problem, is it a real problem or is it me?

Thanks, lynn W4NL